BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
If you’re traveling by train in India, especially in AC classes or premium categories, GST is part of your ticket cost. Indian Railways, like airlines, applies GST on certain types of tickets. In this blog, we’ll explain how gst on train tickets works, what classes are taxed, and what to know about cancellations and refunds.
GST is applicable only on certain categories of railway travel. The rate depends on the class of travel.
| Train Class | GST Rate | GST Applicable? |
|---|---|---|
| AC First Class / Executive Class | 5% | Yes |
| AC 2-Tier, 3-Tier, Chair Car | 5% | Yes |
| Sleeper Class, Second Sitting (2S) | 0% | No (Exempt) |
| General Class (Unreserved) | 0% | No (Exempt) |
So, if you’re traveling in AC, gst in railway ticket is 5%, while there’s no GST on non-AC classes.
GST is applied during railway ticket booking—both online (IRCTC) and offline. It is:
So, if you’re making a railway ticket booking for AC 2-tier, your ticket will show a separate GST component at 5%.
Yes, GST is also involved during ticket cancellations—but only for AC classes.
Key rules:
Example:
So, you don’t get back the GST on the cancellation fee. The gst on train ticket cancellation is retained as part of the charge.
If you are a business traveler or booking through a company:
The SAC Code for passenger transport by rail is 9964.
Knowing the gst on train tickets helps you understand your fare breakup better. Whether you travel frequently or manage bookings for a company, being aware of these GST rules helps you save time and claim eligible credits.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.