CA Mukesh Thakur

Relevant rules and GST rates applicable in case of Air Travel Agent or Tour Operator and Related Services

RULES 32 of the Central Goods and Service Tax Rules, 2017 provides Determination of value in respect of certain supplies.

As per sub-rule 3 of rule 32 –

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.

Check New GST Rate List 2017 here

List of Travel related services along with SAC codes and rates

9964 Transport of passengers by air in economy class 5%
9964 Transport of passengers by air in other than economy class 12%
9964 Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport. 5%
996423 Taxi services including radio taxi & other similar services 18%
996425 Domestic / international scheduled air transport services of passengers 18%
996426 Domestic / international non-scheduled air transport services of passengers 18%

(Republished With Amendments)

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Category : Goods and Services Tax (8393)
Type : Articles (18506)
Tags : goods and services tax (6832) GST (6433)

36 responses to “GST on Air Travel Agent or Tour Operator and Related Services”

  1. kpnair says:

    1. A a travel agent purchases Airticket and getting Invoices in the A,s name for booking ticket for C ( B2B & B2C)through another travel agent called B.
    Can A raise bill to C with Markup and charges 5% GST and avail avail ITC on the bills from B using HSN/SAC 9964 .

  2. Rupakshi says:

    We are a Travel Agent from Mumbai. We book Air Tickets,
    As we are NON IATA agent, we book tickets from IATA Agent and sell it to Direct Customer after adding a margin. The IATA agent also gives us commission. What % of GST should we charge to Direct Consumer on Ticket fare and on what? .For example if we have purchased an air ticket of Rs. 4000 after deduction of comm of 200 and we have sold at 4500. On what amount shall we charge GST and at what %

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