Planning a train journey in India? Then understanding GST on railway ticket booking is super important — especially if you travel frequently or book for business purposes. Whether you reserve through IRCTC, a travel agency, or at a railway counter, GST can impact the final price of your ticket.
This guide breaks down GST rates, exemptions, cancellation rules, Tatkal tickets, business GST claims, and the latest GST updates as per the 2025 revision — all in simple language.
Table of contents
- 1 1. What is GST on Railway Tickets?
- 2 2. GST Rates on Train Tickets: AC vs Non-AC
- 3 3. GST on Tatkal Train Tickets
- 4 4. GST on Online IRCTC Bookings
- 5 5. GST on Train Ticket Cancellation
- 6 6. GST Exemptions on Railway Tickets
- 7 7. Impact of GST on Train Travel
- 8 8. Input Tax Credit (ITC) on Train Tickets
- 9 9. Latest GST Update (September 2025)
- 10 Conclusion
- 11 Frequently Asked Questions (FAQs)
1. What is GST on Railway Tickets?
GST (Goods and Services Tax) is a unified indirect tax applied to most services in India — including railway transportation. When a passenger books a ticket, GST is added based on the travel class and service type.
Railways fall under the 5% GST slab, but only for certain classes. For other classes like Sleeper or Second Seating, GST is fully exempt.
2. GST Rates on Train Tickets: AC vs Non-AC
Here’s the latest breakdown (2025) of GST rates on various classes:
| Class of Travel | GST Rate |
|---|---|
| AC 1A, 2A, 3A, AC Chair Car, Executive Chair Car | 5% GST |
| First Class | 5% GST |
| Sleeper Class | Exempt |
| Second Sitting (2S) | Exempt |
| Premium/Luxury Trains (Palace on Wheels, Maharajas’ Express) | 5% on base ticket + 18% GST on additional onboard services |
➡ Example:
Base fare AC 3-tier: ₹1,200
GST @ 5% = ₹60
Total Fare: ₹1,260
For Sleeper Class base fare ₹450 → Total remains ₹450 (No GST).
3. GST on Tatkal Train Tickets
Tatkal tickets also attract GST like regular tickets.
| Type | GST Rate |
|---|---|
| Tatkal AC bookings | 5% GST |
| Tatkal Sleeper/2S | No GST |
4. GST on Online IRCTC Bookings
If you’re booking via IRCTC, two GST components apply:
| Component | GST Rate |
|---|---|
| Train Fare (AC Classes Only) | 5% |
| IRCTC Convenience Fee | 18% GST |
The GST invoice is automatically generated and sent along with the e-ticket.
5. GST on Train Ticket Cancellation
GST applies only if the original booking had GST.
Example (AC 3-tier):
- Ticket Price: ₹1,000
- Cancellation Fee: ₹60 (₹57 + ₹3 GST)
- Refund Issued: ₹940
➡ GST on cancellation fee is NOT refunded.
6. GST Exemptions on Railway Tickets
Some categories are exempt from GST:
✔ Sleeper Class
✔ Second Sitting (2S)
✔ Children below 5 years without seat/berth
✔ Metro, monorail & tram tickets
7. Impact of GST on Train Travel
GST simplified railway taxation and made AC travel slightly more structured. While AC passengers pay a 5% GST, non-AC classes remain affordable for mass commuters.
8. Input Tax Credit (ITC) on Train Tickets
Businesses can claim ITC on GST paid for railway travel — if:
✔ Travel is business-related
✔ GSTIN is added while booking
✔ Invoice contains GST details
SAC Code for railway travel: 9964
9. Latest GST Update (September 2025)
As per recent GST 2.0 rollout update:
GST on AC and premium coach tickets remains unchanged at 5% from September 22, 2025.
No increase — a relief for frequent AC travellers.
Conclusion
Understanding GST on railway ticket booking helps travellers plan smarter and avoid surprises while booking. The current system strikes a balance — keeping budget travel affordable while charging moderate tax on premium classes.
To summarize:
- AC Classes → 5% GST
- Sleeper & 2S → No GST
- IRCTC Convenience Fee → 18% GST
- Tatkal AC → 5% GST
- Refunds exclude GST on cancellation charges
Always check your ticket invoice for GST details — especially if you’re claiming ITC for business travel.
Frequently Asked Questions (FAQs)
1. What is the GST rate on railway tickets in India?
The GST rate is 5% for AC classes and First Class, while Sleeper Class and Second Sitting tickets are fully exempt.
2. Can businesses claim GST input credit on train tickets?
Yes. ITC can be claimed only for business-related travel where GSTIN is mentioned during booking.
3. What is the GST rate on IRCTC convenience fees?
IRCTC convenience charges attract 18% GST.
4. Is GST applicable on children’s train tickets?
Yes — if the child holds a separate seat/berth in AC class. No GST applies if the child travels without a reserved berth.
5. Is GST refunded if I cancel my railway ticket?
No. GST charged on cancellation fees is not refundable