New GST on Train Tickets: AC, Non-AC, and Class-wise Tax
- The train ticket GST rate depends on the class of travel. AC and Executive class train tickets generally attract 5% GST, while non-AC passenger classes are exempt.
- GST is calculated and included in the total ticket fare during booking through railway booking channels.
- GST treatment on cancelled AC train tickets depends on applicable railway cancellation and refund rules.
- Businesses may claim eligible Input Tax Credit on GST paid for AC train travel when the journey is for business purposes and GST conditions are satisfied.
- Passenger transport services by rail are classified under SAC 9964 for GST purposes.
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.
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New GST Rate on Railway Tickets in India
The applicable GST rates for railway tickets in India are provided below. GST depends on the class of travel and whether the ticket falls under taxable passenger transport services.
GST Rate on Railway Tickets by Class
| Train Class | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) | GST Applicable? |
|---|---|---|---|
| AC First Class / Executive Class | 5% | 5% | Yes |
| AC 2-Tier, AC 3-Tier, Chair Car | 5% | 5% | Yes |
| Sleeper Class, Second Sitting (2S) | Exempt | Exempt | No |
| General Class (Unreserved) | Exempt | Exempt | No |
Train Class
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
GST Applicable?
Train Class
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
GST Applicable?
Train Class
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
GST Applicable?
Train Class
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
GST Applicable?
Record All Train Ticket Sales in Daily Day Book Report
GST on Train Ticket Booking
GST is applied during railway ticket booking—both online (IRCTC) and offline. It is:
- Automatically calculated and shown on the final fare
- Included in the total ticket price
- Applicable only when booking AC or Executive class tickets
So, if you’re making a railway ticket booking for AC 2-tier, your ticket will show a separate GST component at 5%.
GST on Train Ticket Cancellation
Yes, GST is also involved during ticket cancellations—but only for AC classes.
Key rules:
- GST is deducted from the cancellation charges
- Refund is issued after deducting GST-inclusive cancellation fee
Example:
- AC 3-tier ticket: ₹1,000
- Cancellation charge (with GST): ₹60 (₹57 + ₹3 GST)
- Refund issued: ₹940
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.
Input Tax Credit (ITC) on Train Tickets
If you are a business traveler or booking through a company:
- You can claim Input Tax Credit on GST paid on AC train travel
- Your company must be GST-registered
- Invoice should include your GSTIN and proper HSN/SAC code
The SAC Code for passenger transport by rail is 9964.
Conclusion
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 .
