Rail Neer Gets Cheaper: Railways Slashes Prices After GST Cut; Check Details

New Delhi: With the aim of passing on the benefit of the reduced Goods and Services Tax (GST) to consumers, the Ministry of Railways on Saturday announced its decision to slash the maximum retail price of Rail Neer, the packaged drinking water provided by the Indian Railway Catering and Tourism Corporation (IRCTC).

Effective from 22 September, the price of a 1-litre bottle will be ₹14 instead of ₹15, and a 500 ml bottle will cost ₹9 instead of ₹10. Notably, the price cut is also applicable to water bottles of other brands sold in railway premises and trains.

"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," read the caption of the post below which the Ministry posted the circular.

"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," the circular read.

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

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

One of the users on X has raised a concern, claiming that instead of consumers benefiting, the price cut could lead to corruption.

"This is utter nonsense and would breed corruption. My experience is, the shop keepers and Vendors donot sell Neer water below Rs. 20, staying they have no change to pay back. Now odd amount of Rs. 14 would help them earn an extra rupee and NO benefit would pass on to consumer," the user said below the post.

This is utter nonsense and would breed corruption.

My experience is, the shop keepers and
Vendors donot sell Neer water below
Rs. 20, staying they have no change to
pay back.

Now odd amount of Rs. 14 would help
them earn an extra rupee and NO benefit
would pass on to consumer.

— NK Gupta *️⃣ 🇮🇳 (@nkgupta_in) September 20, 2025

IRCTC To Double Rail Neer Production At Ambernath Plant For Mumbai & Gujarat

Under the new GST reforms, effective from 22 September, the GST on packaged drinking water has been reduced from 12% to 5%.