tour operator booking hotels outside india – is reverse charge applicable
Query (Issue) Started By: – Richa Goyal Dated:- 22-2-2018 Last Reply Date:- 29-9-2018 Goods and Services Tax – GST
Got 10 Replies
GST
We are a tour operators. We book hotels on behalf of our clients outside India. The hotel in the other country raises bills on us as tour operators and We in turn raise bills on our clients in India. Shall we be liable for GST on the invoice received from the hotel outside India for booking on behalf of our clients. Kindly guide in view of section 11 (3) of IGST act, 2017.
Reply By Praveen Nair:
The Reply:
Under GST, supply of goods and/or services in the course of import into India is be deemed to be supply in the course
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n connection with this query.
Reply By KASTURI SETHI:
The Reply:
I agree with Sh.Parveen Nair Ji. I add that the tour operator is covered under Section 13(8)(b) of IGST Act as he is also performing Intermediary Services. No doubt about applicability of GST under RCM. In my view, sub-section (5) is not applicable here as suggested by Sh.Ganeshan Kalyani Ji. Other experts may intervene.
Reply By rajkumar shukla:
The Reply:
In my view it is not a case of section 13(5) of the IGST as it covers admissions to or organisation of events. it is also not the case of 13(4) as the recipient of service in the instant case is tour operator and not the client who stays in hotel. it thus falls under 13(8) of IGST hence taxable .RCM should apply.
Reply
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a hotel, inn,guest house , club or campsite , by whatever name called, grant of rights to use immovable property, services for carrying out or co-ordination of construction work, including that of architects or interior decorators, shall be the place where the immovable property is located or intended to be located.
Accordingly, If I am a tour operator and booking accommodation in hotel for my customer outside the India than in that case one of the conditions mentioned under section 2(11) i.e The place of supply must be in India is not being satisfied and hence we can hold that it shall not be considered as Import of Services and No RCM leviable on such services.
Kindly guide
Reply By KASTURI SETHI:
The Reply:
Here the tour operator i
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