CA Mukesh Thakur
Relevant rules and GST rates applicable in case of Air Travel Agent or Tour Operator and Related Services
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 (GST on Air Travel Agent or Tour Operator and Related Services
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|