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

48 Comments

  1. 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?

  2. 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?

  3. 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

  4. 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

  5. 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

    1. asif says:

      yes mr.sultan,

      you can pu end customer gst number while issueing ticket. the number is reflecting on ticket copy also. airline will send the invoce to the customer for 5% gst (k3) tax.

      which he can claim.

  6. 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 200@18%?. Whin i booking in makemytrip or goibibo can i provide gst number for ITC?

  7. 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 .

  8. 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 %

  9. 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?

    1. Deepak says:

      You do not need to charge GST on any amount as IATA agent has already charged GST, you have to pass on it to your client.
      But if you are charging any service fees to your client then you have to charges GST @ 18% on only Service fees portion. or
      If IATA agent is giving you commission on booking then you have to charge IATA commission bill with GST @ 18%

    2. CA Vishal Mehta says:

      I had a similar query.Basically the fact is that travel agents charge GST only on service fees but their real income is much more than that since there is difference between what price they get ticket for and what they sale although price on tickets are reflected as the same but in those proces there is hidden profit.Whether GST needs to be paid on that hidden profit is a big question since they do not bill that to anyone as commission

  10. 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?

  11. 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 ????????????????

  12. 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.

    1. Deepak says:

      You are acting as an Agent, you are dealing with Intra state as well as Inter state taxpayer or client. So, from the first bill you are liable to register under GST even though your commission is below 20 lacs.

  13. 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.?

  14. 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?

    1. Deepak says:

      1.You must charge 5% on full amount of package without ITC,
      2. Your client is from India for overseas package 5% and For client is from Out of India or NRI for Overseas package no GST.

  15. 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

  16. 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.

    1. 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.

  17. 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.

  18. 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

  19. 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

  20. 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.

  21. 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’

  22. 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

  23. 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

    1. 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.

      1. 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)

        1. 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.

          1. Vikflair says:

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

      1. 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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