CA Mukesh Thakur

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

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Category : Goods and Services Tax (4549)
Type : Articles (14319)
Tags : goods and services tax (3111) GST (2698)

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

  1. Vishnu Prasad says:

    I had reserved bus tickets from an agency,it was a bulk booking the GST rate comes around 7000INR/-, will i get credit of the same in future , in the above post i found that GST for bus tickets are NON ITC

  2. h singh says:

    we are a tour operators, we issued tickets from some other agents to our clients but they are giving us the comm to the air tickets.
    1-should we pay gst on that if yes then how?
    or may we take a rcm on that?
    2-we also got incentive from the air tickets agent
    is this gst payable if yes the how?
    3-we have also made travel insurance from agent and got comm for the same is this also gst payable?

    kindly advise.

    • Avantika Agg says:

      Mr. Singh,

      1. Please understand that an airline ticket is likely to be a contract b/w the airline and the passenger. The travel agent is only a facilitator who receives commission from the Airlines. Hence GST on these ticket will only be consumed by the passenger and the agent cannot use them as their input credit. But
      2. the agent/ Tour Operator has to pay GST on the commission received from the airline on the reverse basis (RCM). (For Example, if the GST is 18% and the agent receives Rs. 1000 as commission, he has to pay only Rs.152.54 (100-100/118%) as GST). This amount of Rs. 152.54 should not be collected from the passenger.
      3. If the agent collects Service Fee as an additional charge from the passenger and show it in the invoice separately, he can add GST on the service fee in the invoice and collect the same from the passenger.

  3. Sumanta nayak says:

    Query : If the customer from state booked hotel through travel agent then the travel agent will charge igst and take input credit and the customer will get igst input credit which is not possible ibcadr of direct booking where cgst is applicable.if this is correct then instead of booking directly all interstate customer should book through travel to get input credit.

  4. Preeti Bhardwaj says:

    Dear Sir,

    My query is that I am Booking Air Ticket for Business Trip for Company through online booking site like Make my trip, Goibibo. they have provided me Invoice with their GST Nos. and details.
    Now problem is that like for example if I have booked Spice Jet Air tickets through GoIbibo.
    Invoice given by them is like :
    Base Fare : 3208
    Airline GST : 166 (5%)
    Other Charges : 296
    Sub Total : 3730
    now Convenience Fee (a) : 211.86
    CGST @ 9% on (a) : 19.07
    SGST @ 9% on (a) : 19.07
    Grand Total : 3980

    My question is that can I (as a company) avail the credit of Airline GST of Rs. 166 also? along with 9% CGST (Rs. 19.07) and SGST (Rs. 19.07)
    Or only 19.07 CGST & SGST is allow to me as Input credit.

    Thanks & Regards
    Preeti

  5. Kavita says:

    What will be the procedure for international hotel bookings?
    1) Hotel suppose charge my credit card 100 USD i.e. Rs 6400 INR after conversion on my card , I mark up and charge client, Rs.7000. So 18% GST should be paid on 600? Please can you confirm.
    2) If suppose client pays directly to the hotel i.e. 6400 and pays me only my part which is Rs. 600. So I have to pay 18% GST on Rs. 600?
    Thanks

  6. akshay sharma says:

    sir i am non iata agent and what is our turnover

    our commission value ya our invoicing value

  7. MS ALI says:

    Hi Experts

    Pls clerify me.
    I am Travel Agent, any person want to book ticket online which shows cost of Rs. 12000/-
    He visit to my office and ask me for price i convince him to provide ticket for Rs. 10000/- and 700/- Service Charges with GST of Rs. 126/- total cost 10826/-
    I got it from airlines for Rs. 8500/-
    it is clear that i have to pay GST Rs. 126 plus 18% on 1500/- with back calculation i.e.229/- total of Rs. 355/-
    .
    now my question is whether i am violating MRP law.
    or
    it is okay for business when i am paying tax t govt. on all difference.

  8. kanhaiya kumar says:

    Hi, Kanhaiya Kumar form Delhi , i am a travel agent in Delhi, i have a 1 question on Tour operator services , as per you 5% GST charge on total tour package amount for example : Total package cost INR @ 100000+ 5% GST : 5000/- , Total cost : 105000/- and my profit is 5000/- in total cost . can i charge GST 18% on my profit instant of 5% of total package amount. Please advice.
    Thanks’

  9. shirish says:

    HOW TO CHARGE GST ON SERVICES LIKE MAKE MY TRIP.

  10. Mahender Lalwani says:

    Very Informative article.

    I would like you to throw light on Air Travel Agent who book for customers being intermediary.

    Like for example –

    Basic airfare-3000
    UDF-300
    PSF-200
    Fuel tax-1000
    GST 5% charged by airline on basic fare -150
    Total cost of air fare 4650 INR.

    Now an agent booked this ticket for customer X and got 45 INR (50-TDS10%) as commission from airline.
    Agent charged Mr X an extra 100 INR as his service fee .
    So Mr. X paid in all 4750 to agent and agent paid 4650-50=4600 to the airline.

    Now please advise for the agent, how much GST (rate and amount ) he has to pay to govt and on what value and how can the agent raise TAX invoice and on whose name ? what all components in this case there should be mentioned in the customer-invoice given to customer

    Thanks and Regards
    Mahender Lalwani

  11. M.Prasad says:

    HI,
    My Q uestion is same as above ( Heren Parmar )

    Any Rebate for Tavel Agent on GST

    Thanks

  12. Anju says:

    sir,

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

  13. 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.

      • Abhay Jain says:

        1.If Your Principal Giving you Commission on Booking than on commission principal will give you GST.
        2.If you charge Extra from your Customer then you have to charged 18% on extra charged ( Example You have Issued Ticket from Principal Rs.5000 and Rs.200 you have charged extra that means Total Amount Rs.5200 on 5000 already included gst by the Airline and Principal, you have to charge only on Rs.200 which you have charged extra)

        • Pravesh says:

          As you said 18% Gst is to be paid for Rs 200 (service fee) that is charged extra to the customer.it is agreed.
          But for this 20lakhs Turnover exemption limit under GST will Apply here rite??.
          I mean only if the commission & the service fee exceed Rs 20lakhs Annually for the financial year then the GST is to be paid by the agent. As the total sales is on behalf of the airline/principal agent.
          Pls revert.

          • Vikflair says:

            SINCE UR A COMMISSION AGENT, U HAVE TO MANDATORILY REGISTER FOR GST REGARDLESS OF THE 20 LAKH/10 LAKH LINE

  14. 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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