The railways ministry announced the waiving of service tax charges on online bookings done through the IRCTC website till December 31, 2016, to encourage cashless transactions in the wake of the demonetisation 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.
A tax of Rs 20 is usually levied on sleeper class tickets and Rs 40 on AC class tickets while transacting via the government-run website.
The move to incentivise cashless transactions come at a time the country is facing a liquid cash crunch following the demonetisation of 1,000 and 500 rupee banknotes.
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