Cancellation of tickets is expensive
GST is also having an impact on railway tickets. Now you will have to pay more for canceling the confirmed ticket. Actually, according to the new rule, you will have to pay GST on the charge on cancellation of booking. That is, if you cancel the confirmed train ticket from now on, then you will suffer more than before, because the Railways will deduct the GST charge from your refund. After a long dispute, now the Finance Ministry has made it clear that you will have to pay a fine for canceling any kind of delay and similarly you will have to pay GST on cancellation of a confirmed ticket.
What is the rule – 5% GST
The Finance Ministry has made a provision of penalty on cancellation of any kind of deal and according to them, booking of tickets has been given a kind of deal. In such a situation, the passenger has to pay a fine on canceling the booking, that is, you will be taxed and you will have to pay more than before. In this regard, a circular has been issued by the Tax Research Unit of the Ministry of Finance and people have been explained for different situations. According to this circular, the rate at which you will pay GST during ticket booking or any kind of booking, while canceling that booking, you will also have to pay GST on the cancellation charge at the same rate. Railways charges 5% GST on ticket booking.
how much will it charge
If you have to pay 5% GST on the fare of the train while booking the ticket in First AC coach. When you cancel this ticket, the cancellation charge, which is Rs 240, will also have to pay 5% GST i.e. Rs 12 extra on this amount. That is, on canceling the ticket, you will have to pay a charge of Rs 240 plus 12. That is, there will be a penalty of Rs 12 more than before.
GST on cancellation of these bookings
Not only train but hotel room, plane ticket have also been booked and for some reason you have to cancel it, even then you will have to pay GST. However, GST relief has been given on rooms of inns run by religious and charitable institutions. The Finance Ministry has clarified that for every service connected with the cancellation service, GST will have to be paid on the cancellation charge.