Rail Neer Gets Cheaper: Railways Slashes Prices After GST Cut; Check Details

New Delhi: With the aim of passing on the benefit of the reduced Goods and Services Tax (GST) to consumers, the Ministry of Railways on Saturday announced its decision to slash the maximum retail price of Rail Neer, the packaged drinking water provided by the Indian Railway Catering and Tourism Corporation (IRCTC).

Effective from 22 September, the price of a 1-litre bottle will be ₹14 instead of ₹15, and a 500 ml bottle will cost ₹9 instead of ₹10. Notably, the price cut is also applicable to water bottles of other brands sold in railway premises and trains.

"In order to directly pass on the benefit of the reduced GST to consumers, it has been decided to reduce the maximum selling price of Rail Neer from ₹15 to ₹14 for 1 liter and from ₹10 to ₹9 for half a liter," read the caption of the post below which the Ministry posted the circular.

"Maximum retail price of packaged drinking water bottle 'Rail Neer' shall be revised from 15/- to ₹ 14/- per bottle of one litre and 10/- to₹ 9/- per bottle of 500 ml capacity," the circular read.

"Maximum retail price of IRCTC/Railways shortlisted packaged drinking water bottles of other brands sold in railway premises/trains shall also be revised from 15/- to ₹14/- per bottle of one litre and 10/- to ₹9/- per bottle of 500 ml capacity," the circular added.

One of the users on X has raised a concern, claiming that instead of consumers benefiting, the price cut could lead to corruption.

"This is utter nonsense and would breed corruption. My experience is, the shop keepers and Vendors donot sell Neer water below Rs. 20, staying they have no change to pay back. Now odd amount of Rs. 14 would help them earn an extra rupee and NO benefit would pass on to consumer," the user said below the post.

Under the new GST reforms, effective from 22 September, the GST on packaged drinking water has been reduced from 12% to 5%.