New Delhi, July 2 (IANS) Travelling by train in an air-conditioned class and dispatching goods through the transporter will be exempted from sales tax for the next three monrths, the railway ministry announced Monday.

According to the railways, keeping public interest in mind, the finance ministry issued a notification Monday exempting transportation of passengers (with or without accompanied belongings) in air-conditioned coaches and transportation of goods from service tax.

The exemption would be effective upto Sep 30.

The decision came after Railway Minister Mukul Roy took up the issue with Prime Minister Manmohan Singh, who also holds the charge of finance ministry.