Major Source of Income of Tour Operator & Travel Agents:
- Commission from Airlines& any mark-up amount from passengers.
- Sale Tour Packages, both inbound and outbound
- Travel Related Services like Visa, Passport etc.
- Hotel Bookings
- CAR Rental Services, Travel Insurance
- Railway Reservations
- AIR TICKET & COMMISSION FROM AIRLINES COMPANIES:
- BASICALLY AIR TRAVEL AGENTS DERIVE FOLLOWING TWO TYPE OF INCOME SO AIR TRAVEL AGENT WILL RAISE 2 INVOICES.
- Service fees @ 18% on invoice value to passenger: (1st Invoice)
- Commission/incentive earning from airlines: (2nd Invoice)
Option A: GST Rate on 18% on Commission on issue of invoice on Airlines
Option B:DOMESTIC FAIR:5% of Basic Fair i.e. 0.9 % basic fair (18%*5%)
INTERNATIONAL FAIR:10% of Basic Fair i.e.1.8 % basic fair (18% *10%)
Note: BASIC FARE means that part of the air fare on which commission is normally paid to the air travel agent by the airline.
PLACE OF SUPPLY
- Location of SERVICE RECEIVER
- Service Receiver located in India
- Service Receiver Registered under GST
- Service Receiver Not Registered under GST but his address is available on records
- Location of SERVICE PROVIDER
- In case service Receiver Not Registered and his address not available
Which Tax to be imposed – IGST/CGST/SGST?
| LOCATION OF SUPPLIER | ADDRESS OF SERVICE RECEIVER | TRAVEL PLACE | PLACE OF SUPPLY AS PER GST | TAX APPLICABLE |
| PUNJAB | PUNJAB | INDIA | PUNJAB | CGST+SGST |
| PUNJAB | PUNJAB | OUTSIDE INDIA | PUNJAB | CGST+SGST |
| PUNJAB | NEW DELHI | INDIA | NEW DELHI | IGST |
| PUNJAB | NEW DELHI | OUTSIDE INDIA | NEW DELHI | IGST |
| PUNJAB | OUTSIDE INDIA | OUTSIDE INDIA | OUTSIDE INDIA | NO GST |
| PUNJAB | OUTSIDE INDIA | INDIA | OUTSIDE INDIA | EXPORT OF SERVICE |
- IN CASE OF COMMISSION FROM AIRLINES :
- Location of SERVICE RECEIVER
- If Location of Airlines in India
- Location of SERVICE PROVIDER
- If Location of Airlines outside India
| LOCATION OF SUPPLIER | LOCATION OF AIRLINES | PLACE OF SUPPLY for agent | TAX APPLICABLE |
| PUNJAB | PUNJAB | PUNJAB | CGST+SGST |
| PUNJAB | NEW DELHI | NEW DELHI | IGST |
| PUNJAB | OUTSIDE INDIA | PUNJAB | CGST+SGST |
- SALE OF TOUR PACKAGES (BOTH INBOUND & OUTBOUND):
INBOUND TOURS: Guided tours within India planned by tour operators for the tourist coming from abroad
OUTBOUND TOURS:Guided tours outside India planned by tour operators for Indian tourist going abroad
- INBOUND TOURS:
- IF TOUR IS ON PRINCIPAL BASIS (DIRECT SERVICES) then
- The Place of Supply shall be location of performance of service i.e. In India
- Taxable @ 5% without ITC.
- IF THE TOUR IS ON COMMISSION BASIS (SUB AGENT/INTERMEDIARY) then
- The Place of Supply shall be location of Service Provider i.e.in India
- Taxable @ 18% with ITC.
- OUTBOUND TOURS:
THE PLACE OF SUPPLY
- IN CASE OF PRINCIPAL TO PRINCIPAL TRANSACTION SERVICE RECIPIENT IS:
- LOCATION OF SERVICE RECEIVER
- Service RecipientLocated in India & registered under GST Law
- Service RecipientLocated in India but not registered under GST law but address is available on record
- IN CASE WHERE TOUR OPERATOR RECEIVES COMMISSION FROM ANOTHER TOUR OPERATOR SITUATED OUTSIDE INDIA
- LOCATION OF SERVICE PROVIDER
- Place of Tour Operator i.e. India
- OUTBOUND TOUR SOLD TO A FOREIGNER FOR VISITING ANOTHER FOREIGN COUNTRY & THE PAYMENT RECEIVED IN CONVERTIBLE FOREIGN COUNTRY IS EXEMPT FROM GST.
III. TRAVEL RELATED SERVICES LIKE VISA, PASSPORT Etc.
- All government fees &transaction charges paid on behalf of the client are not covered under GST Liability.
- Service charges charged by the operator on the above servicesshall be subject to GST @ 18%.
- If the service is outsourced from another service provider,GST Paid on agent invoice can be claimed as ITC from output tax paid on the total charges.
- COMMISSION ON HOTEL BOOKING:
- COMMISSION FROM HOTEL/CRUISE:
PLACE OF SUPPLY
- Domestic Hotel -LOCATION OF HOTEL.
- international hotel-LOCATION OF SERVICE PROVIDER
Which Tax to be imposed – IGST/CGST/SGST?
| LOCATION OF SUPPLIER | LOCATION OF HOTEL/CRUISE | PLACE OF SUPPLY for agent | TAX APPLICABLE |
| PUNJAB | PUNJAB | PUNJAB | CGST+SGST |
| PUNJAB | NEW DELHI | NEW DELHI | IGST |
| PUNJAB | OUTSIDE INDIA | PUNJAB | CGST+SGST |
- COMMISSION FROM PASSENGERS:
PLACE OF SUPPLY
- LOCATION OF SERVICE RECEIVER
- Service Recipient Located in India & registered under GST Law
- Service Recipient Located in India but not registered under GST law but address is available on record
- LOCATION OF HOTEL/CRUISE
- Service Recipient Located/resident outside India
Which Tax to be imposed – IGST/CGST/SGST?
| LOCATION OF SUPPLIER | LOCATION OF PASSENGER | LOCATION OF HOTEL/CRUISE | PLACE OF SUPPLY for agent | TAX APPLICABLE |
| PUNJAB | PUNJAB | DELHI | PUNJAB | CGST+SGST |
| PUNJAB | NEW DELHI | BENGLURU | NEW DELHI | IGST |
| PUNJAB | OUTSIDE INDIA | BENGLURU | BENGLURU | IGST |
| PUNJAB | NEW DELHI | OUTSIDE INDIA | NEW DELHI | IGST |
- Car Rental Service, Travel Insurance – GST 5% WITHOUT ITC
- Renting of Motor Vehicle shall be –GST 5% WITHOUT ITC or 12% with ITC.
PLACE OF SUPPLY– LOCATION SERVICE RECIPIENT provided recipient is located in India.
- GST for travel insurance is 18% but agent are required to register with IRDA as per Insurance act 1938
- RAILWAY COMMISSION:
- GST for booking for railway is 18%
- PLACE OF SUPPLY-LOCATION SERVICE RECIPIENT provided the agent is receiving service charges from customer.