Indian Railways Reduces Bottled Water ‘Rail Neer’ Price After GST Reforms

Indian Railways has revised the maximum retail price (MRP) of Rail Neer packaged drinking water, a move aimed at passing on the benefits of the new Goods and Services Tax (GST) structure to passengers. Effective from September 22, the lower prices will apply to all railway premises and trains across the country.

Revised Pricing Structure

According to a Railway Board circular, the price of a 1-litre bottle of Rail Neer, manufactured by IRCTC, has been cut from ₹15 to ₹14. Similarly, the price of a 500 ml bottle has been revised from ₹10 to ₹9. The same price adjustment will also be applicable to other “shortlisted” packaged drinking water brands sold at railway stations and onboard trains.

As per the news reports, the circular stated, “Maximum retail price of packaged drinking water bottle 'Rail Neer' shall be revised from ₹15 to ₹14 per bottle of one litre and ₹10 to ₹9 per bottle of 500 ml capacity. Maximum retail price of IRCTC/Railways shortlisted packaged drinking water bottles of other brands sold in railway premises/trains shall also be revised accordingly.”

Context: GST Reforms

The decision follows the implementation of a new GST structure beginning September 22. The reforms streamline taxation into a two-tier system, with most goods and services attracting either 5% or 18% GST. Ultra-luxury items will be taxed at 40%, while tobacco and related products will continue to attract 28% GST plus cess.

Previously, GST operated with four slabs: 5%, 12%, 18%, and 28%  in addition to compensation cess on luxury and demerit goods. The new structure aims to simplify taxation while ensuring affordability for essential items such as packaged drinking water.

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Conclusion

By reducing the price of Rail Neer and other packaged drinking water brands, Indian Railways is directly passing on GST savings to passengers. The move not only lowers travel costs for millions but also reflects the government’s intent to make essential services more affordable under the reformed tax system.

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