The Ministry of Railways announced on Saturday that the price of bottled drinking water sold on trains, Rail Neer, will be reduced following the recent GST rate cuts.
According to a circular from the Railway Board, the price of a 1-litre bottle of Rail Neer will decrease from ₹15 to ₹14, while a 500 ml bottle will now be sold for ₹9, down from ₹10. The new rates will come into effect from September 22, 2025.
The ministry stated on X (formerly Twitter) that the price revision is intended to directly pass on the benefits of the GST reduction to consumers. The revised maximum retail price (MRP) will also apply to other pre-approved packaged drinking water brands sold at railway stations and on trains nationwide.
The move follows the 56th GST Council meeting on September 3, which rationalized GST rates into two slabs of 5% and 18%, merging the previous 12% and 28% slabs. Industries across India were asked to pass on the full benefit of the GST cuts to consumers, aiming to boost demand for domestic products and support the Indian economy.
The 5% GST slab covers essential goods and services, including pre-packaged snacks, ghee, butter, coffee, chocolates, agricultural products, and medical equipment. The 18% slab applies to most goods and services, including automobiles, electronics, and consumer products. Luxury and “sin” goods, such as tobacco, aerated beverages, and high-end vehicles, fall under a 40% slab.
Several consumer brands, including Amul, HUL, L’Oréal, and Himalaya, have already announced price reductions following the GST reforms.
