GST in Indian Railways Passenger Segment
● It has been decided to levy Goods & Services Tax (GST) in place of service tax including cess on transportation of passengers by rail.
● GST will be levied on the fare of passenger services in place of service tax (including cess) on the following classes:-
(i) AC first class (ii) Executive class (iii) AC-2 tier class (iv) AC-3 tier (v) AC chair car class (vi) AC economy class (vii) First class (viii) AC and first classes coaches of special trains/coaches on FTR (ix) All other type of first class and AC class coaches if any:-
● The rate of GST shall be 5% on total fares. (in place of 4.5% service tax levied earlier i.e. an increase of 0.5% only)
● On concessional tickets GST shall be levied at the prescribed rate on total actual fare collected after concession/rebate.
(i) In case of combined return journey tickets for AC & first class tickets, separate tickets for onward journey and return journey ticket may be issued in all cases whether for UTS tickets or for PRS tickets. However, for suburban UTS tickets for which journey originating/ terminating station is within the same state/same UTs issue of combined return journey ticket over suburban section shall continue.
(ii) Circular journey tickets for AC & first class tickets shall be discontinued w.e.f. 01.07.2017.
(iii) Issue of AC Class tickets from UTS counter shall be discontinued w.e.f. 01.07.2017.
(iv) Issue of cluster tickets from PRS for AC & first class tickets shall be discontinued w.e.f. 01.07.2017. However, issue of cluster ticket in UTS shall continue.
(v) In any other case if combined ticket are issued except season ticket the same will be discontinued and only point to point tickets will be issued in AC classes and First classes as proposed above.
● In case tickets were booked in advance along with service tax for journeys to commence on or after date of implementation of GST, the Goods & Service Tax difference of fare shall not be collected on the tickets booked in advance. The new GST shall be applicable on tickets issued on or after 01.07.2017.