If you have bought AC or first class ticket of the train and due to some reason you have to cancel your journey, then in lieu of canceling the ticket, you will have to pay 5 percent GST (GST on Train Ticket Cancellation) in addition to the cancellation charge . This means that more money will have to be paid for cancellation of confirmed train tickets for these categories . According to a circular issued by the Ministry of Finance, cancellation of train tickets will now attract a GST of 5 percent.
According to media reports, the Tax Research Unit of the Ministry of Finance has issued three circulars explaining many rules, one of which is related to cancellation charge and GST . A circular is about cancellation of bookings in hotels, entertainment shows and train tickets. Accordingly, a booking is treated as a contract in which the service provider promises to deliver the service. The Finance Ministry is of the view that cancellation of any booking is a payment made by the customer for breach of contract, hence GST will have to be paid on it. That is, cancellation of the ticket in any case will now attract 5% GST on the cancellation fee.
More money will have to be paid on ticket cancellation
If you return a ticket booked in an AC first class compartment of the train, then a cancellation charge of Rs 240 is to be paid. Now you will also have to pay 5% GST on the cancellation fee of Rs 240. This means that you will have to pay an additional Rs 12.
It is a matter of relief that no GST is applicable on other classes and second sleeper class. Explain that Indian Railways currently charges Rs 240 for cancellation of tickets 48 hours or more before the scheduled departure time of the train. If the confirmed ticket is canceled 48 hours to 12 hours before the scheduled departure of the train, 25% of the ticket amount is charged as cancellation charge.
Money will have to be paid even on cancellation of hotel and air tickets
Apart from this, you will also have to pay GST on cancellation of air ticket or hotel booking. If you have booked a hotel or flight ticket and cancel it, then 5% GST will be levied on that too. Please note that this GST will have to be paid on the cancellation charge.