Bottled water on trains gets cheaper: Indian railways reduces Rail Neer prices after GST cut — check new cost
Water bottles available in railway premises will become cheaper as Indian Railways has decided to pass on the benefits of GST rate cut to the consumers. Check new prices of Rail Neer here.
The Ministry of Railways on Saturday announced that the bottled drinking water available in trains — Rail Neer — will become cheaper as a result of the recent GST rate cuts.
Earlier this month, the government, as part of its next-generation GST reforms, reduced the duty on several products and reduced slabs from four to two. The slew of GST reforms are set to come into effect from September 22.
New price of Rail Neer
According to a circular issued by the Railway Board, the price of a 1-litre bottle of Rail Neer has been reduced from ₹15 to ₹14, while a 500 ml bottle will now be sold for ₹9 instead of an earlier price of ₹10. The new rates will come into effect from September 22, 2025.
“In order to directly pass on the benefit of the reduced GST to consumers, it has been decided to reduce the maximum selling price of Rail Neer from ₹15 to ₹14 for 1 liter and from ₹10 to ₹9 for half a liter,” the ministry posted on X (formerly Twitter).
The revised MRP will also apply to other shortlisted packaged drinking water bottles of various brands sold at railway premises and trains throughout the country. "Necessary action may be taken accordingly," the circular noted.
On September 3, the 56th GST council meeting decided to rationalise GST rates to two slabs of 5% and 18% by merging the 12% and 28% rates. The government also asked industries across India to pass the full benefits of the upcoming GST rate cuts to consumer so that the demand of domestic products get increased and in turn build the foundation of the Indian economy
What are the revised tax slabs for goods?
After the GST rate cut announcement, several consumer brands announced reduction in the prices of their goods, including Amul, HUL, L'Oréal and Himalaya.
The 5% slab consists of essential goods and services, including pre-packaged Namkeen, bhujiya, sauces, instant noodles, coffee, ghee butter, chocolates and more. Agriculture and medical equipment also fall under this tax slab.
The 18% slab has been set as a standard rate for most goods and services, including automobiles such as small cars and motorcycles, consumer goods like electronics in order to meet middle class aspirations.
Additionally, there is a 40% slab for luxury and sin goods, including tobacco and pan Masala, products such as cigarettes, bidis, and aerated sugary beverages, as well as luxury vehicles such as high-end motorcycles and helicopters.