Rail Neer gets cheaper! Indian Railways reduces prices after GST cuts; check new prices

Indian Railways on Saturday announced slashing the price of its Rail Neer bottled water, passing on the benefits of GST reforms to passengers.Starting September 22, a one-litre bottle will be available for Rs 14 down from Rs 15, while a 500 ml bottle will cost Rs 9 instead of Rs 10.The price cut also applies to other IRCTC-approved packaged water brands sold at stations and on trains, the ministry of railways informed in a statement.Taking to social media platform X, the ministry wrote, "Health and savings, both together on the journey! Mineral-rich water - Rail Neer, now even more affordable."

Railways has also reviewed procurement costs for other items, including air-conditioners, subcontracted works, and goods transport services, which will become cheaper with the new GST rates. In a written note, the Railway Board instructed that necessary checks should be exercised at the time of processing supplier bills to avoid any errors in the payment, as per an ET report.Other materials under the new tax scrutiny include granite, marble, travertine blocks, sand-lime bricks, stone inlay work, clinkers, electric accumulators (including separators), and electrical ignition components.Under the reforms, GST rates will now follow a two-tier system of 5% and 18%, replacing the earlier 12% and 28% slabs.

This change is expected to make products cheaper, encourage consumption, and simplify compliance, improving business conditions during global economic uncertainty.Economists predict the reforms could add 20–30 basis points to India’s growth, helping offset the effect of 50% US tariffs. The overall fiscal impact is estimated at Rs 48,000 crore, but the finance ministry expects higher compliance and rationalised rates to balance this.