With the Goods and Services Tax (GST) coming into effect from July 1, train passengers will have to pay a bit more to travel AC and first class.
Service tax on ticket charges is set to hike from 4.5% to 5% after the GST implementation.
Service tax is levied only on AC and first class travel fares in the Railways. So if a ticket costs Rs 2,000, then a passenger will have to shell out Rs 2,010 from the next month, said a senior Railway Ministry official.
Gearing up for the GST roll-out, the Railways has appointed nodal officer in each state to ensure smooth transition into the new single tax regime.
The general manager of each zone has been nominated as the principal officer for taking care of GST compliance.
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