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RULES :- Determination of Value of Supply

6. Determination of value in respect of certain supplies:

(1) Notwithstanding anything contained in these rules, the value in respect of supplies specified below shall, at the option of the supplier, be determined in the manner provided hereinafter.

(3) The value of supply of services in relation to booking of tickets for travel by air provided

by an air travel agent, shall be

deemed to be an amount calculated at the

rate of 5%. of the basic fare in the case of domestic bookings, and

at the rate of 10% of the basic fare in the case of international bookings

of passage for travel by air.

Explanation – For the purposes of this sub-rule, the expression “basic fare” means that part of the air fare on which commission is normally paid to the air travel agent by the airline.

SCHEDULE OF GST RATES FOR SERVICES AS APPROVED BY GST COUNCIL

If option is not exercised the following rates (Normal) rates will apply:

Serial Number DESCRIPTION OF SERVICES GST RATE
6 Renting of motor cab (If fuel cost is borne by the service recipient, then 18% GST will apply) 5% No ITC
7 Transport of passengers, by-

(i) Air conditioned contract/stage carriage other than motorcab;

(ii) a radio taxi.

5% No ITC
8 Transport of passengers by air in economy class 5% with ITC of input services
9 Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport. 5% with ITC of input
10 Supply of tour operators’ services 5% No ITC
15 Transport of passengers by air in other than economy class 12% With Full ITC
17 Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having room tariff Rs.1000 and above but less than Rs.2500 per room per day 12% With Full ITC
24 Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff of Rs 2500/ and above but less than Rs 5000/- per room per day 18% With Full ITC
25 Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises 18% With Full ITC
28 Supply of Food/drinks in air-conditioned restaurant in 5-star or above rated Hotel 28% With Full ITC
32 Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent is Rs 5000/- and above per night per room 28% With Full ITC
36 All other services not specified elsewhere 18% With Full ITC

More Under Goods and Services Tax

Posted Under

Category : Goods and Services Tax (3997)
Type : Articles (13683)
Tags : goods and services tax (2562) GST (2147)

6 responses to “Relevant rules and rates applicable in case of Air Travel Agent or Tour Operator and Related Services”

  1. Anju says:

    sir,

    if i received advance in june and service in rendered july then what tax rate charge on tour package .

  2. Ketan nathani says:

    Hi
    Please tell me , on what basis have to come to this consensus.

    How can itc not be granted to rent a cab operator ?
    In many a cases , it is purchase and sale of service
    With no ITC on d purchase , the cost of service will increase and again tax on tax will be levied
    Thus again putting d system blocked or puttin this under cascading effect
    On the other hand
    A tour operator ( principle ) cannot take gst credit from hotels and car operators , however tour operator selling the package to a travel agent ( registered ) can take gst credit and charge gst to customer

    The travel industry fraternity is mostly unqualified
    Every one will have to be trained and understand the basis of act and then how to act.

    We are simply putting our interpretations from the law as the law and law makers are silent

    • Hiren Parmar says:

      We are a Travel Agent from Mumbai. We book Air Tickets, Hotel, Cars.

      As we are NON IATA agent, we book tickets from IATA Agent and sell it to Direct Customer. As IATA Agent charges us 18% on Commission, but what % of GST should we charge to Direct Consumer on Ticket fare.

      Same goes with the Hotel, as we book direct Hotel, Hotel Charges us 12% or 18% or 28% on Room Tarrif, but what % of GST should we charge to Direct Consumer on Bill Value.

      Answers of this will give a clear idea to many off small travel agents like us. Helpful answers are appretiated. Thanks.

  3. Dushmant Ku. Parida says:

    Whether Room rent of Hotel less than Rs.1000/- is exempted under GST Act ????

    • Krs says:

      Yes, it’s exempted.

      • Hiren Parmar says:

        We are a Travel Agent from Mumbai. We book Air Tickets, Hotel, Cars.

        As we are NON IATA agent, we book tickets from IATA Agent and sell it to Direct Customer. As IATA Agent charges us 18% on Commission, but what % of GST should we charge to Direct Consumer on Ticket fare.

        Same goes with the Hotel, as we book direct Hotel, Hotel Charges us 12% or 18% or 28% on Room Tarrif, but what % of GST should we charge to Direct Consumer on Bill Value.

        Answers of this will give a clear idea to many off small travel agents like us. Helpful answers are appretiated. Thanks.

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