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.

List of Travel related services along with SAC codes and rates

SAC Code DESCRIPTION OF SERVICES GST RATE
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)

Checkout the GST on Tour Packages

More Under Goods and Services Tax

66 Comments

  1. srikanth says:

    Sir,
    I booked a flight ticket through indian agent, unfortunately the flight is cancelled now because of covid. Airlines confirmed that they are refunding full amount.

    But, Indian agent is deducting K3 Tax and his service charge.

    Can you please confirm if I can get K3 Tax as refund, if the flight is cancelled.

    Thanks,
    Sri.

  2. Vikram Chander says:

    Hi, I have 2 clarifications on international booking
    1. Can we shift from 1.8% to 18% on service fee for different transactions or is it fixed for the financial year.

    2 When cancelling and issuing credit note , we might levy cancellation fee. In such case do we charge 1.8% on the service fee or 18% on the service fee after credit of previous GST.

    Thanks in advance

  3. CA Rajat Ghand says:

    What is the GST rate in case i received advance against Air ticket booking?
    Suppose i have received Rs 1 cr as advance against air ticket booking, at what percentage i have to deposit GST to govt.?

  4. Cs says:

    I am a non iata travel agent…. I buy a ticket for my client for rs 10,000(basic+tax) from iata agent and sell it to my client for rs 12,000(basic+tax)….so do I need to pay gst on markup value of rs 2,000 and under what section/column I need to pay OR do I need to pay gst on the entire amt of rs 12,000 … pls advice…

  5. Cs says:

    I am a non iata travel agent…. from your many replies to question asked have understood that for domestic ticket gst applicable is 0.9% on basis fare and 1.8% on international tickets…. wanted to know under which coloumn/section in gstr1 and gstr3b it needs to be shown and paid…

  6. anand kandpal says:

    Hi Sir,
    We non Iata agent. we booked ticket by iata agent and sell to client. can i apply GST Rate 5% & 10% on basic fare because of we can not show the service charge to the client invoice. pls advice us what we do?

  7. Payal Patel says:

    I understand being commission agent I have to get GST registration. But I don’t need to file GST until I reach 10/20 lakh cap, am I right?

  8. Jyoti says:

    I would like to know about 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
    Jyoti

  9. Naijil says:

    we are travel agents and we purchase package from another travel agent and extra we include air ticket and traveling service and give to customer what is the gst rate

  10. Qaiser Sultan says:

    Hi!I am travel agent need help regarding Gst of 5% charged By airline and then we are charging 18% on Mar-up from client so in this case END client is only claims 18% but is it possible the end costumer will claim also 5% Airline GST which has been charged. Pls Any CA with clear concept regarding this can call me -91-7006688481

  11. Prodipto mondal says:

    I am a travel agent. I booked air ticket through many website like makemy trip, goibibo. I got promo code discont. Example ticket price 5000 incliding tax,convinance fess but i got this in 4500 using promo code. In this time gst will be in promo discount amonut 500 @18%. Or if i add 200 service charge for 4500+200= 4700 . In this [email protected]%?. Whin i booking in makemytrip or goibibo can i provide gst number for ITC?

  12. 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 .

  13. 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 %

  14. vishal says:

    I am non IATA Travel agent. i book ticket from IATA agent. my question is if i sell ticket to my customer on discounted rate for example Printed price of ticket including all tax is rs.5000/- and i sell it to Mr X Rs4800/-. (Discount Amount Rs.200/-) do i have to charge GST on Discount amount of Rs.200/-? or not?

  15. Archana says:

    We are IATA travel agent, We book tickets as well as insurance, eurail pass,hotels etc,.
    We are paying GST 18% on Basic Fare for airline ticket. Do we need to pay GST on commission earned by us?

  16. Istekhar Ahmed says:

    base Fare 5375.0
    Airline Fuel Charge 975.0
    Tax and Other Charges:
    Passenger Service Fee 245.0
    Airline GST 320.0
    Other Surcharge 50.0
    Total Fare 6965.0
    so i have booked a domestic air ticket my question is how much deducted rate of gst on which amount ????????????????

  17. bhavan tulshyan says:

    hello,
    my total commission from airline ticket booking is less than 20 lacs.do i need to register in GST. and if not, please help me with the procedure for cancellation of GST number.

  18. R MURALI says:

    Dear sir,

    On the above subject, we have an some doubts regarding Segregation in GST RATE i.e IGST , CGST AND SGST. Can you please clarify? The details given below:

    COMMISSION MODULE – TAX IS PAYABLE ON COMMISSIN AS PER SECTION 15.

    DOMESTIC AND INTERNATIONAL

    1) While filing our GSTR 3B , we have to shown Total Value and applicable IGST , CGST AND SGST if it is there. i.e

    TAMIL NADU TO TAMILNADU IT IS APPLICABLE – CGST AND SGST – 18% ( Ticket booking point Tiruchy and boarding point at Chennai)

    TAMILNADU TO ORISSA IT IS APPLICABLE ONLY – IGST -18%( Ticket booking point Tiruchy and boarding point at Chennai)

    TAMILNADU TO SINGAPURE – IGST 18% IS IT CORRECT? ( Ticket booking point Tiruchy and boarding point at Chennai)

    The above segregation is correct or wrong?

    2) Further is it Mandatory (Air travel Agent) requirement for opts Basic fare model or Commission earned . Is it declared with Dept.?

  19. Priyadarshini says:

    Hi,
    We are non IATA tour operators and sell an entire package which includes air tickets, Hotels, car, etc. To our cost we add a markup for our services. PLEASE advise:
    1.. if we are supposed to charge 5% on total package (including our markup) or 5% on Only the markup?
    2.. will the above calculation change for overseas packages?

  20. 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

  21. 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.

  22. 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.

  23. 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

  24. 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

  25. 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.

  26. 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’

  27. 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

  28. 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

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