The Railway has reportedly decided to refund service tax collected from the passengers on cancelled tickets which were booked prior to the implementation of the Goods and Services Tax (GST) from 1st July, 2017. Earlier, it was decided not to return 4.5 percent service tax levied on all AC class tickets.
As reported in the Indian Express, the refund will be applicable to tickets that were booked before July 1 and are cancelled after implementation of the GST.
About 4.5 percent was levied on all tickets of AC class and after GST the amount has reached 5 percent.
“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.
Necessary directions have been given to Railway IT arm, CRIS in order 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.
