GST Exemption On Railway Services: Platform Tickets, Waiting Rooms And More To Become Cheaper

Mumbai: Platform tickets and railway services such as retiring rooms, waiting rooms, cloakroom facilities, and battery-operated car services will might be cheaper in near future. In a significant move aimed at providing relief to passengers and enhancing accessibility to railway services, the Goods and Services Tax (GST) Council has decided to exempt several essential amenities offered by Indian Railways from taxation. This decision was announced during the 53rd GST Council meeting held on June 22nd.

Effective from October 20th, 2023, a range of services provided directly by Indian Railways to the public will be exempt from GST. These services include platform ticket sales, access to retiring rooms, waiting rooms, cloakroom facilities, and battery-operated car services within railway premises.

Furthermore, the Council also addressed concerns related to transactions involving Special Purpose Vehicles (SPVs) providing infrastructure to Indian Railways. Services such as allowing Indian Railways to utilize SPV-owned infrastructure and maintenance services provided by Indian Railways to SPVs during concession periods will also benefit from GST exemption.

This decision marks a significant regulatory adjustment, aimed at streamlining tax implications and enhancing the accessibility and affordability of essential railway services. A senior railway official confirmed the development, highlighting that an official notification regarding these changes is forthcoming.

"The move is expected to positively impact millions of passengers and stakeholders within the Indian Railways ecosystem, reducing costs and improving service accessibility across the board" said Vineet Abhishek Chief Public Relations Officer of WR..