In re M/s TUI India Private Limited (GST AAR Delhi)
The applicant is supplying booking of hotel accommodation services. They are admittedly paying GST @ 18% (9% CGST + 9% SGST) on service fee / convenience fee commission received from clients and also on target based sales commission received from the foreign hotel aggregators (DOTW). The value of ‘hotel accommodation’ paid by the client to them, which is remitted by them to the foreign hotel / hotel aggregator cannot be included in such taxable value, provided the conditions of pure agent are satisfied.
The applicant is required to collect / deposit GST under Section 9(1) of the CGST Act, 2017 on the amount received by them from the clients on the value of ‘hotel accommodation’ service, while acting as an agent under Section 2(5) of the said Act being “taxable person” defined under Section 2(107) of the said Act and “supplier” defined under section 2(105) of the said Act.
The ‘tour operators services are covered under entry (I) of S. No. 23 of Notification No. 11/2017 — Central Tax (Rate) dated 28.06.2017 and they are required to pay GST @ 5% (2.5% CGST + 2.5% SGST) (without ITC) subject to fulfilment of conditions and they are not covered under entry (ii) of the S. No. 23 of the said Notification before 25.01.2018 and entry (Iii) of S. No. 23 of the said Notification from 25.01.2018 and hence option to pay GST @ 18% (9% CGST + 9% SGST) (with ITC) is not available to them.
