GST on Tour & Travelling Agent - GST Registration, GST cancellation, GST Return Filing

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GST on Tour & Travelling Agent

Tour Operator under GST

"Tour operator” means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sight-seeing or other similar services) by any mode of transport and includes any person engaged in the business of operating tours


GST registration limit under Tour & Traveling Business

Every supplier whom aggregate turnover in financial year exceeds Rupees 20 Lakhs shall be liable to be registered under GST. The Limit is 10 Lakhs in case of special category of states.

Further threshold limit of Rs. 20 Lakhs is not applicable in following cases:

  • Peron making any inter-state taxable supply
  • Person who makes taxable supply of goods or service or both on behalf of other taxable person whether as an agent or otherwise, such as Air Travel Agent.

 

Activities include in Tour & Travel Business

  1. Air Travel Agent
  2. Rail Travel Agent
  3. Rent-A-CAB Service 
  4. Tour Package- inbound & outbound 
  5. Visa & Passport Assistance 
  6. Hotel Booking Services 
  7. Travel Insurance Services 
  8. Other Services (amusement facilities, joy rides like camel ride, elephant ride, horse ride, boat ride, jeep safari, porter services, guide services etc)

 

Air Travel Agent

Case-1: Air Travel Agent opts to pay GST on basis fare module

 Air travel agents will raise 2 invoice.

Type of
booking
Basic fare assumed
 (Rs.)
Effective value (Rs.)
GST payable @ 18%
(Rs.)
Effective
rate
of GST %
Domestic ticket
10,000
500 (5% of basic fare)
90
0.90%
International ticket
10,000
1,000 (10% of basic fare)
180
1.80%

Note: In case an air travel agent opts to pay GST on basic fare module, he is not required to pay GST on commission received from the airlines as well as service charges / booking charges / management charges from the customer / passenger.

Invoice to passenger (When ATA is on Basic fare model) (domestic booking)
S.No
Particulars
Reimbursement
of Expenses
Taxable
Value
Total Value
1
Reimbursement of
Air ticket issued by
Airline
10500
0
10500
1a
Value of basic fare
included above
9500
475
0
2
Booking Charges to
passenger
100

100
3a
Add: CGST @ 9%
or IGST @ 18%

42.75
42.75
3b
Add: SGST @9%

42.75
42.75
4
Total


10685.5
Invoice to Airline (When ATA is on Basic fare model)

S.No
Particulars
Taxable Value
Total Value
1
Commission from Airline
500
500
2a
Add: CGST @ 9%
or IGST @ 18%


2b
Add: SGST @9%


4
Total
500
500

Case-2: Air Travel Agent opts to pay GST on Commission module

Air travel agents will raise 2 invoices.
  1. 1st  Invoice: Service fees @ 18% on invoice value to passenger. ITC is available
  2. 2nd Invoice: 18% on Commission receive from Airlines Company. ITC is available
Invoice to passenger (When ATA is on commission model)



S.No
Particulars
Reimbursement
of Expenses
Taxable
Value
Total Value
1
Reimbursement of
Air ticket issued by
Airline
10500
0
10500
1a
Value of basic fare
included above
9500
0
0
2
Booking Charges to
passenger

100
100
3a
Add: CGST @ 9%
or IGST @ 18%

9
9
3b
Add: SGST @9%

9
9
4
Total

118
10618
Invoice to Airline (When ATA is on commission model)

S.No
Particulars
Taxable Value
Total Value
1
Commission from Airline
500
500
2a
Add: CGST @ 9%
or IGST @ 18%
45
45
2b
Add: SGST @9%
45
45
4
Total
590

590

GST on Tour & Travelling Agent
(GST  on Tour & Travel Agent)

Principal to Principal billing

Particulars
Cost
Sale Value
Ticket Purchase (Value)
23810

GST by Airline*
1190

Total ticket price
25000

Ticket Sold at

24762
GST by agent**

1238
Total sale price of ticket

26000

* Input credit at time of service has been received
** due immediately

Place of supply

Commission from Passenger:

Case 1: Service receiver located in India & his address is available: Location of service Recipient
Case 2: Service Receiver address not available: Location of Service Provider

Commission from Airlines:

Case 1: Location of Airlines in India: Location of Service recipient
Case 2: Location of Airlines outside India: Location of service Provider

Rail Travel Agent

GST rate will be 18% on service charges collected from passengers. No other option rate is applicable in this case. 

SAC in the case of Rail Travel Agent will be 9967. 

Place of supply: Location of service Recipient

There are 2 methods of invoice:
  • If the invoice  not showing margin separately then tax liability shall be  on the gross amount charged
  • If operator hire cab & show margin on bill GST @ 18% of margin shown only (rule 33)

Rent-A-Cab Services

Commission model: GST Applicable rate will be @18%

Net Cost & Mark-up basis

Case-1: where the cost of fuel is included in the consideration charges: GST Applicable rate will be @5% without ITC or @12% with ITC

Case-2: where the cost of fuel is not included in the consideration charges: A Cab operator is required to pay GST@ 18% with ITC.

SAC in the case of Rent-A-CAB service is 9967.

Place of supply: Location of service Recipient

There are 2 methods of invoicing if operator hired cab:
  • If the invoice  not showing margin separately then tax liability shall be  on the gross amount charged
  • If operator hire cab & show margin on bill GST @ 18% of margin shown only (rule 33)

Tour Package- inbound & outbound

Inbound Tour Package: Tours organized by the Tour Operator, within India for the tourist coming from outside India is known as inbound tours.

1. If tour is on Principal basis i.e. on its own account has done the various booking and then raises bill on the client, then Taxable @ 5% without ITC & the place of supply shall be location of performance of service i.e. in India

Note: If Tour operator avail any services from another Tour Operator as input service then ITC on such input services which is similar to his output can be taken. (Notification No. 1/2018- Central Tax (Rate), dated 25th January, 2018) (5% on total value not mark-up)

2. If the tour is on Commission basis then taxable @ 18% with ITC & place of supply shall be location of Service Provider i.e.in India

There are 2 methods of invoicing:
  • If the invoice  not showing margin separately then tax liability shall be  on the gross amount charged
  • If operator hire cab & show margin on bill GST @ 18% of margin shown only (rule 33)

Inbound Tour Package: Tours organized by the Tour Operator, outside India, for the tourist going outside India is known as outbound tour.

1. If tour is on Principal basis i.e. on its own account has done the various booking and then raises bill on the client, then Taxable @ 5% without ITC & the place of supply shall be location of Service receiver.

Note: If Tour operator avail any services from another Tour Operator as input service then ITC on such input services which is similar to his output can be taken. (Notification No. 1/2018- Central Tax (Rate), dated 25th January, 2018) (5% on total value not mark-up)

2. The place of supply in case where tour operator receives commission from another tour operator from aboard shall be place of tour operator i.e. India & taxable @ 18% with ITC

There are 2 methods of invoicing:
  • If the invoice  not showing margin separately then tax liability shall be  on the gross amount charged
  • If operator hire cab & show margin on bill GST @ 18% of margin shown only (rule 33)

Note: Outbound tour sold to a foreigner for visiting another foreign country & the payment received in foreign country is exempt from GST.

Visa & Passport Assistance

Visa & Passport Assistance is required to pay GST@ 18% with ITC.

S.No
Particulars
CON
VFS
VA
1
Consulate Fees
5000
5000
5000
2
VFS



2.1
VFS Fees
1000


2.2
Courier/ DD Charges
300


2.3
GST @ 18% on 2.1+2.2
234



Total
6534


3
Agents



3.1
Visa Fees


500
3.2
Reimbursement of VFS fees as per receipt attached


1534
3.3
GST @ 18% on 3.1


90

Total


7124

 

Hotel Booking Services

Hotel Booking agent is required to pay GST@ 18% with ITC or 5% without ITC.

There are 2 methods of invoicing:
  • If the invoice  not showing margin separately then tax liability shall be  on the gross amount charged
  • If operator hire cab & show margin on bill GST @ 18% of margin shown only (rule 33)

Place of supply:

Commission from Hotel:

Domestic Hotel: Location of Hotel
International Hotel: Location of Service Provider

Commission from Passenger:

Location of Service Recipient is in India: Location of Service Recipient
Location of Service Recipient is out of India: Location of Hotel

Travel Insurance Services

Travel Insurance Agent is required to pay GST@ 18% with ITC or 5% without ITC

Other Services

  • Amusement facilities / joy rides like camel ride, elephant ride, horse ride, boat ride, jeep safari services attract GST@ 28% with ITC or 5% without ITC. SAC code as 9996. 
  • Porter services, guide services attract GST@ 18% with ITC or 5% without ITC. SAC code is 9985

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