Rail Neer Gets Cheaper, Indian Railways Reduces Price Of Bottled Water After GST Cuts. Check Details

Indian Railways on Saturday (Sep 20) announced a price cut for the Rail Neer packaged drinking water, passing on the benefits of the historic Goods and Services Tax (GST) reforms to the passengers. According to a circular issued by the Railway Board, the price of a 1-litre bottle of Rail Neer, which is manufactured by the Indian Railway Catering and Tourism Corporation (IRCTC), has been reduced from Rs 15 to Rs 14. Meanwhile, the price of a 500 ml water bottle has been reduced to Rs 10 from the earlier price of Rs 9.

"Maximum retail price of packaged drinking water bottle 'Rail Neer shall be revised from Rs 15 to 14 per bottle of one litre and Rs 10 to Rs 9 per bottle of 500 ml capacity," read the circular.

The circular also stated that the revised MRP will also be applicable to other 'shortlisted' packaged drinking water bottles of various brands sold at railway premises and trains throughout the country.

"Maximum retail price of IRCTC/Railways shortlisted packaged drinking water bottles of other brands sold in railway premises/trains shall also be revised from Rs 15 to Rs 14 per bottle of one litre and Rs 10 to Rs 9 per bottle of 500 ml capacity."

GST कम किये जाने का सीधा लाभ उपभोक्ताओं को पहुंचाने के उद्देश्य से रेल नीर का अधिकतम बिक्री मूल्य 1 लीटर के लिए ₹15 से कम करके 14 रुपए और आधा लीटर के लिए ₹10 से कम करके ₹9 करने का निर्णय लिया गया है। @IRCTCofficial #NextGenGST pic.twitter.com/GcMV8NQRrm

— Ministry of Railways (@RailMinIndia) September 20, 2025

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What Are The GST Reforms?

Effective September 22, GST will be a two-tier structure wherein majority of goods and services will attract tax of 5 and 18 per cent. A 40 per cent tax will be levied on ultra luxury items while tobacco and related products will continue to be in the 28 per cent plus cess category.

Currently, Goods and Services Tax (GST) is levied in four slabs of 5, 12, 18 and 28 per cent. Besides, a compensation cess is levied on luxury items and demerit or sin goods.