Railways to refund service tax on cancelled tickets
NEW DELHI: For the benefit of passenger s, railway has decided to refund service tax for cancelled tickets that were booked prior to implementation of GST on July 1. Earlier, it was decided not to return 4.5 percent service tax levied on all AC class tickets.
The refund will be applicable to tickets that were booked before July 1 and are cancelled after implementation of the GST.
“Due to problems being faced by passengers as well as Railway staff at the reservation counters, it has now been decided that in case the ticket has been booked in advance before July 1, 2017 and the same is cancelled in that case total amount of service tax charged at the time of booking shall be refunded,” said a senior railway ministry official.
Earlier, it was instructed that in case the ticket has been booked in advance before implementation of GST and the same is cancelled after implementation, total amount of service tax charged at the time of booking shall not be refunded to passengers in cash and shall not be transferred in the account from which transactions took place in case of e-tickets.
Railway IT arm, CRIS has been directed to ensure necessary changes in the software and compile the data regarding the number of tickets cancelled, refunds made, service tax/GST refunded for debit to be raised from concerned department in respect of service tax and GST.
About 4.5 percent was levied on all tickets of AC class and after GST the amount has reached 5 percent.