On August 3, a circular was issued by the Ministry of Finance which said that GST will be levied on the cancellation of confirmed train tickets.
The notification read “When the contract is breached by the passenger, the service provider is compensated with a small amount, collected as cancellation charge. Since the cancellation charge is a payment and not breach of contract, it will attract GST.”
Ticket cancellation in any situation will be attracting 5% of cancellation charges. The same will be applied to the cancellation of air tickets, or hotel bookings.
