Budget 2017: No Service Charge on Railway E-Tickets

Online Ticket Booking - Demonetisation - Taxscan

In a move to promote cashless economy, the Government decided to withdraw service charges on railway e-tickets booked through irctc website.

As per the new proposal by the FM Arun Jaitley, all e-tickets booked through the irctc website will get cheaper. Jaitley announced that no service charge will be levied on tickets booked through the irctc website. Currently, irctc charges Rs 40 on every ticket booked in air-conditioned classes whereas Rs. 20 is charged for sleeping class.

Reports suggest that railway derives a third of its revenue from service charge. The Finance Minister also hinted a hike in ticket prices. The railways plans to price tickets after taking into consideration the actual cost of a journey. At the moment, railway fares are heavily subsidized by the government.