People travelling by AC and First Class in trains will have to pay some more money to book their tickets, after the Goods and Services Tax (GST) is implemented from July 1. The current service tax on ticket charges is 4.5 percent, but post GST rollout on July 1, this will increase to 5 percent. Railway officials said that this is only a marginal increase for passengers. However, if we consider from the railways’ perspective, even 0.5 percent extra earned on every ticket will result in huge overall income, considering that lakhs of tickets are booked every day.
The railways had already started making changes to its systems to ensure smooth transition to GST. A nodal officer has been appointed in every state to help with the transition to GST. The railways have also appointed a consultant to look into the impact of GST on the Indian Railways. The railways have also got its PAN issued, since GST will be based entirely on PAN. GST compliance in railways will be looked after by the general manager of each zone. The necessary changes in software and systems are being carried out by the Centre for Railway Information Systems, the IT arm of Indian Railways.