AC fares in trains to go up marginally

New Delhi, June 30

With the GST coming into effect, rail passengers will have to pay a little more to travel AC and first class.

Service tax on AC ticket charges will be hiked from 4.5 per cent to 5 per cent, an increase of 0.5 per cent, after the GST implementation.

GST on transport of goods by rail will be 5 per cent in place of service tax of 4.5 per cent levied earlier with exemption for essential goods like milk and agriculture produce. Service tax is levied only on AC and first class fares in the Railways. So if a ticket costs Rs 2,000, then a passenger will have to shell out Rs 2,010 from July 1. However, a passenger will not have to pay if in case tickets were booked in advance for journey to commence on or after July 1. — PTI