Booking train tickets online become cheaper as railways waive off service tax

Zee Media Bureau

New Delhi: From Wednesday, all train tickets booked online via the IRCTC website have become cheaper thanks to the railway waiving off the service tax.

In a move to encourage cashless transaction following the demonetisation of Rs 500 and Rs 1000 notes, the government has waived off the service tax for online booking of train tickets via the IRCTC website.

Service tax will not be levied on tickets booked through the IRCTC website from November 23 to December 31, said a senior Railway Ministry official.

#ServiceTax waived for train tickets booked through #IRCTC website till Dec 31. #Demonetisation

— Press Trust of India (@PTI_News) November 22, 2016

Rs 20 is levied as service tax on Sleeper and Rs 40 on AC classes for booking tickets through IRCTC.

Service tax has been waived to incentivise cashless transactions through online booking, the official added.