A detailed look at the the various FASTag charges
- FASTag is an RFID sticker that allows cashless payment of toll fares.
- You must pay a FASTag joining fee of INR 100, as stated by the NCPI.
- FasTag price is determined depending on the vehicle, and you have to pay a nominal and refundable security deposit.
- You are also required to maintain a minimum balance to ensure a smooth payment process.
- FASTag saves time at toll booths while also helping you save fuel.
In 2016, the National Highway Authority of India (NHAI) under the Ministry of Road Transport and Highways introduced FASTag – a unique toll collection system. FASTag is a digital toll payment service that reduces the transaction time at toll booths. In this article, we discuss how FASTag works and the various FASTag costs.
How FASTag Works
Helmed by the National Payments Corporation of India (NPCI) and developed by National Electronic Toll Collection (NETC), FASTag is a Radio Frequency Identification (RFID) sticker. It enables you to make toll payments directly from your bank account or a linked prepaid account. You must affix the sticker on the windscreen of your vehicle. The sticker is scanned when you stop at a toll booth, and the toll tax is automatically collected, enabling you to pass the toll booth without making a cash transaction.
FASTag costs depend on the type of vehicle you own. You can purchase the FASTag from toll booths, Point of Sale (POS) outlets, or e-commerce websites. Bank FASTag is also available from NETC affiliated bank members. Here is a look at the various FASTag charges.
FASTag Sticker Price
You must pay a one-time joining fee to register yourself as a FASTag user. NETC affiliated banks can charge a maximum of INR 100, including taxes, per tag. This amount is fixed by the NPCI.
Another FASTag price you have to pay is the security deposit, which is typically a nominal amount. When you close the FASTag account, you get a full refund of the deposit. The security deposit amount differs depending on your vehicle class. The bank may use this amount to adjust outstanding toll charges in case of insufficient balance.
You must maintain a minimum amount in your prepaid account and pay this balance amount at the time of activating your FASTag. The minimum balance depends on your vehicle class, and the FASTag costs for them are as under.
Car / Jeep / Van / Tata Ace and Similar mini – Light Commercial Vehicle
Light Commercial vehicle 2 – Axle
Bus – 3 Axle
Truck – 3 Axle
Bus – 2 Axle / Minibus, Truck – 2 Axle
Tractor / Tractor with trailer, Truck – 4, 5 & 6 Axle
Truck – 7 Axle and above
Earth Moving / Heavy Construction Machinery
The government has made FASTag mandatory for all applicable vehicle classes. You must pay double the toll amount if you pass through a FASTag toll lane without an affixed FASTag on the windscreen of your vehicle. The one-time joining fee and security deposit amount are minimal. With FASTag, you can save time and fuel consumption and do your bit for our environment.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.