Demonetization effect: Train tickets booked through IRCTC to get cheaper

Train tickets booked through the IRCTC website will become cheaper from Wednesday till the end of the year as the government has waived service tax to encourage cashless transactions in the wake of the demonetization exercise.

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. 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.