Rail Neer Gets Cheaper: In a major relief to passengers, the Ministry of Railways on Saturday informed that it has reduced the price of its packaged drinking water – Rail Neer by slashing the Maximum Selling Price (MRP). The Railway Board, in a circular, informed that the price of Rail Neer (1 litre bottle) has been cut to Rs 1. Now, the 1-litre bottle of Rail Neer will be available for Rs 14. Earlier it prices Rs 15. The price of 500 ml bottle has been brought down from Rs 10 to Rs 9. As per the Railway Board, the new rates will come into force from September 22 with the implementation of new two-slab system.

Will The Revised Prices Apply To Other Packaged Drinking Water Bottles?

The revised prices will be applied to other packaged drinking water bottles sold at railway stations and in running trains. The Railway Board stated that all the necessary arrangements have been made and, “Necessary action may be taken accordingly.”

Why The Price Cut?

On the 56th GST council meeting, the government took the decision to rationalise GST rates to two slabs (5 and 18 percent), merging 12 percent and 28 percent slabs.

HIGHLIGTHS

• Railways has reduced the price of Rail Neer.
• 1-litre bottle now costs Rs 14 (earlier Rs 15) and 500 ml costs Rs 9 (earlier Rs 10).
• The new prices will be applicable from September 22.
• Price cut follows GST Council’s decision to rationalise GST into two slabs – 5 percent and 18 percent.
• Essential goods such as butter, ghee, cheese, dairy spreads, namkeens, utensils, agri-equipment, handicrafts, and medical kits fall under the 5 percent slab.

What Goods Fall Under 5 Percent Slab?

The slab consists of essential goods such as butter, ghee, cheese, dairy spreads, bhujia, mixtures, pre-packaged namkeens, utensils, agriculture equipment, handicrafts and small industries, medical equipment and diagnostic kits.

What Goods Fall Under 18 Percent Slab?

Small cars and motorcycles (up to 350cc), electronic items, household goods, selected professional services, auto parts fall under the slab.

There is a 40 percent tax rate applied to luxury and sin goods such as tobacco and pan Masala, cigarettes, bidis, sugary drinks, luxury vehicles, high-end motorcycles over 350cc, yachts, and helicopters.

It is to be noted that some essential services and educational materials are completely exempt from GST.

(with agency inputs)