New Delhi. On booking hotel and canceling confirmed train ticket, now pocket will be more loose and extra charge will have to be paid for it. The Central Government has made it clear that 5% GST will also be applicable on the charges for cancellation of train tickets.

There was a dispute on this issue for a long time but now the Finance Ministry has clarified the situation. According to the Finance Ministry, just as a fine has to be paid for canceling a deal, similarly GST will have to be paid on cancellation of the ticket.

The same GST amount has to be paid which was charged on the booking time

According to the circular of the Ministry of Finance, the rate at which the customer had paid GST at the time of booking a train ticket or hotel, on cancellation, will have to pay GST on the cancellation charge at the same rate.

Currently, 5% GST is charged on the booking of train tickets and now the same GST will have to be paid on cancellation.

Customers will have to pay so much more

If a passenger books a ticket in AC First Class, then a cancellation charge of Rs 240 has to be paid for the cancellation of the ticket. But now the passenger will have to pay an extra Rs 12 on the cancellation of the ticket at the rate of 5% GST. Whereas for AC 2 tier, Rs 10 will have to be paid for AC 3 tier, Rs 9 more. For cancellation of sleeper class ticket, an additional Rs.6 will have to be paid.