New Delhi: 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 per cent to 5 per cent 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 2000, then a passenger will have to shell out Rs 2010 from the next month, as per sources.
Gearing up for the GST roll-out from from July 1, the Railways have appointed nodal officer in each state to ensure smooth transition into the new single tax regime.