GST on Travel agent
Query (Issue) Started By: – SHARAD ANADA Dated:- 6-1-2019 Last Reply Date:- 9-1-2019 Goods and Services Tax – GST
Got 2 Replies
GST
Respected Sir
Greetings
I have few queries on travel agents/ tour operator services. PL give your expert opinion.
1) Travel agent booked ( blocked) 100 air tickets for rs 5000 per tickets from IATA agent. IATA agent will pay commission if RS 200 per tickets with 18% GST. He in turns slaes air tickets with his markup of RS 500 per ticket. He raise of bill of 5500/- on his customer. On which amt GST is applicable? Is it applicable on 5500 or only on 500/-.
2) some times it happens that out of 100 tickets he is able to sale only 85 tickets and for balance tickets he will pay c
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age from Dubai based travel agent. Can it be considered as import of service and Gujarat based travel agent have to pay GST on rcm basis?
Reply By KASTURI SETHI:
The Reply:
Dear Querist,
Query-wise reply is as under:-
Reply to Query No.1. It is covered under Rule 32(3) of CGST Rules, 2017 which reads as under :-
The value of the 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 five per cent. of the basic fare in the case of domestic bookings, and at the rate of ten per cent. 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 expres
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