Passing on the benefits of GST reforms to passengers, Indian Railways on Sunday announced a reduction in the price of packaged drinking water sold on trains and at stations. The maximum retail price (MRP) of ‘Rail Neer’ has been cut from Rs 15 to Rs 14 for a one-litre bottle and from Rs 10 to Rs 9 for a 500 ml bottle. The new prices will come into effect from September 22, the Ministry of Railways confirmed.

The price reduction will also apply to packaged drinking water bottles of other IRCTC and Railway-approved brands sold on railway premises and trains.

Latest GST reforms

The move follows the GST Council’s recent decision to rationalise tax rates on a wide range of goods and services. The Centre has now streamlined the indirect tax structure into two main slabs — 5% and 18%.

The changes are designed to boost consumption while reducing compliance burdens. An additional slab of 40% is also applicable on ‘sin/high-end’ goods.

Indian Railways’ recent fare hike

The Ministry of Railways in July announced a revision in passenger fares across AC and non-AC classes. As per the new structure, fares in all AC categories — First Class, 2-tier, 3-tier and Chair Car — will rise by two paise per kilometre. Non-AC classes in Mail and Express trains, including Sleeper, Second Class (General) and First Class, will see an increase of one paisa per kilometre.

For passengers in Second Class on ordinary trains, there will be no increase up to 500 km. Beyond that, fares will rise by Rs 5 for journeys between 501-1,500 km, Rs 10 for 1,501-2,500 km and Rs 15 for 2,501-3,000 km.

The Ministry clarified that suburban and monthly season ticket fares remain unchanged.