Confirmed train ticket cancellation Rules Change: If you know this news before canceling the confirmed train ticket. With this you will know how much you will lose if you cancel the confirmed train ticket. According to media reports, on canceling a confirmed ticket, you have to pay a cancellation charge, which is charged as a fine.
Now GST will be applicable
Now according to the new rule, if anyone cancels a confirmed ticket, then he will also have to pay GST on cancellation charges. This will happen because when a service is canceled, then GST is applicable on that too. The same rule will be applicable on ticket cancellation as well. This will increase the ticket cancellation charges even more.
Finance Ministry issued circular
The Tax Research Unit of the Finance Ministry has recently issued a circular regarding this. According to this, the rate at which the customer (rail passenger) had given GST while booking the ticket, on cancellation, he will be charged GST on the cancellation charge at the same rate. 5 per cent GST is levied on booking of rail tickets and now 5 per cent GST will also have to be paid on the cancellation charges. Similarly, the cancellation of the booked room in the hotel will also have to pay GST.
Cancellation charge for train ticket cancellation
In the circular of the Tax Research Unit, the levy of charge for breach of contract has been explained in detail. It states that the booking of train tickets is like a contract in which the service provider promises to provide a service. When the customer breaches this contract i.e. cancels the ticket booking, the service provider is paid a certain amount as cancellation charge. Cancellation charge is a payment made in lieu of breach of contract, hence GST will have to be paid on it.
Know how much it will charge now
If a passenger books a ticket in AC First Class, then he has to pay 5% GST. In such a situation, if he cancels the ticket, then he has to pay a cancellation charge of Rs 240. In such a situation, he will have to pay an additional Rs 12 at the rate of 5% GST on the cancellation fee of Rs 240.
Railway takes charge on cancellation of ticket according to the time. If the confirmed ticket is canceled 48 hours before the departure of the train, then the ticket cancellation charge for AC first class is Rs 240 and for AC 2 tier, Rs 200 is deducted. Whereas, the cancellation charge for AC 3 tier is Rs 180.
understand this too
If you cancel a confirmed ticket within two days to 12 hours from the train’s scheduled departure time, then the cancellation charge is 25 percent. Similarly, for cancellation of tickets from 12 hours to 4 hours in advance, 50% of the ticket is charged.
In such a situation, you will have to pay 5% GST on the cancellation charge. Meaning that half the money of the ticket will also go and 5 percent GST will also be charged on it. If you cancel the ticket within 4 hours, then no refund will be given to you.
