Railways reduces Rail Neer water prices after GST reduction; Effective 22 September

The maximum retail price of packaged drinking water bottles “Rail Neer” will be revised from Rs. 15 to Rs. 14 for a 1-liter bottle and from Rs. 10 to Rs. 9 for a 500 ml bottle.

Varanasi: The Railway Ministry is now preparing to pass on the benefits of the reduced GST rate to the general public. The Railway Board has issued a letter numbered 2025/Catering/631/09 to the General Managers of all Indian Railways, sharing information about the water rate discount. Rail Neer prices are set to change from September 22nd.

The Chairman and Managing Director, IRCTC, New Delhi, in its Commercial Circular No. 18, 2025, states that the maximum retail price of "Rail Neer/Select Packaged Drinking Water" on Indian Railways will be revised. In continuation of the Board's above-mentioned circular, the Ministry of Railways (Railway Board), with the concurrence of the Finance Directorate, has now decided to:

1. The maximum retail price of packaged drinking water bottles "Rail Neer" will be revised from Rs. 15 to Rs. 14 for a 1-liter bottle and from Rs. 10 to Rs. 9 for a 500 ml bottle.

2. The maximum retail price of packaged drinking water bottles of other brands selected by IRCTC/Railways sold on railway premises/trains will also be reduced from Rs. 15 to Rs. 14 for a 1-liter bottle and from Rs. 10 to Rs. 9 for a 500 ml bottle.

The Railways have stated that the instructions will be effective from September 22, 2025. After midnight on this day, the Railways will also reduce the water supply to the general public at stations.

The letter was issued by Rangarajan Anantharanam on Saturday, September 20, 2025, at 1:51:49 PM. This letter is issued to the Public Finance Advisor/All India Railways for information and necessary action, and to the Director General of Audit, All India Railways for information.

GST on Drinking Water

Drinking water is purchased from outside India in most Indian households today. Previously, it was subject to a 12% GST. However, this will change starting September 22nd. A 20-liter water bottle (such as a Bisleri jar) will now attract only a 5% GST. Drinking water will become cheaper than before. Previously, a 20-liter jar or bottle of drinking water was subject to a 12% GST, which will now be reduced to 5%.