GST rollout: Catering charges for premium trains to rise

GST rollout: So, for a commuter travelling in the executive class of a Tejas Express, not only would the fare rise marginally due to the GST, the passenger would also have to pay a higher cost on catering,” said an official.

By: Express News Service | Mumbai | Updated: July 1, 2017 2:54 am
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CATERING CHARGES for premium trains, including Rajdhani, Shatabdi, Duronto and the Tejas Express, will rise from Saturday, after the Goods and Service Tax (GST) replaces the service tax. As catering charges are included in the fares for these trains, the cost will go up marginally.

According to the circular issued by the Railway Board on June 30, the charges for catering in the premium trains will be 18% of the base fare for the commuter.

So, if the service tax levied on the rate of morning tea for a first air-conditioned compartment would be 15% of Rs.12.5 before, it would now be 18%, increasing the cost to Rs 14.75, which will be rounded off to Rs 15.

“The charge would be deposited by the contractor/ service provider of the required service in the train. This formula will be used for the above trains only. However, GST rate will not be rounded off for catering charges in other mail/express trains and the final fare would be separately mentioned up to two decimal points,” an official said.

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The charges of on-board catering of standard menu items for other long-distance trains in the city will not change even after July 1. Rates of products like Rail Neer and catering units at railway stations will also remain unchanged.

The implementation of GST would also increase the ticket fares of all types of first class and AC class coaches of trains. “So, for a commuter travelling in the executive class of a Tejas Express, not only would the fare rise marginally due to the GST, the passenger would also have to pay a higher cost on catering,” an official added. Fares of first class for suburban trains are also set to rise marginally from Saturday.

mumbai.newsline@expressindia,com

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