GST is all set to roll out on July 1.
However, tickets booked prior to GST’s launch will not attract the tax and the difference in service tax and GST will not be collected.
“GST will come into effect only on tickets booked on or after July 1,” said an official communiqué issued by the Railway Board.
“The rate of GST will be 5 per cent of the total fare,” added the circular.
In the case of tickets booked before July 1 but cancelled after the date, the entire amount along with service tax will be refunded after deduction of the cancellation charge.
“However, an amount calculated on the GST rate will be deducted from the cancellation or clerkage charge applicable,” the circular said.
“In the case of cancellation of tickets booked post GST’s launch, the total amount, inclusive of the GST charged at the time of booking, will be refunded with a deduction of the cancellation or clerkage charge, the circular said. The GST amount on that charge will be retained by the railways,” it added.
“The railways will also do away with, from July 1, combined return journey tickets for AC and first class passengers. This means that separate tickets will be issued for onward and return journey to implement GST guidelines,” the circular directed.
For commuters from suburban, a combined return journey ticket will be issued if the originating station and the terminating station fall within the same state.
“However, to implement the GST guidelines, the circular train journeys will be discontinued from July 1,” the circular has said.