Travel Agent Charges 5 GST without ITC. Can he raise invoice18 on Service Fee for Flight Tick

This query is : Resolved

Quick Summary

Travel agents charging 5% GST without ITC on composite tour packages need to be aware of separate service fees. If flight bookings are billed separately as a service fee, the applicable GST is 18% on the service fee itself, with ITC eligibility. This is distinct from the 5% rate applied to the entire tour package. Airline tickets themselves are exempt from GST.

Sudipta Das

Sudipta Das (Querist)
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07 April 2025 Travel Agent Charges 5 % GST without ITC for tour packages. Can he raise invoice @ 18% on Service Fee for Flight Ticket bookings ??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 April 2025 Tour operators providing composite tour packages (including accommodation, transport, etc.) are subject to 5% GST without Input Tax Credit (ITC) under Notification No. 12/2017-CT (Rate).

If the travel agent is charging a separate service fee for flight bookings (not part of a tour package), then:
The service fee is classified under SAC 9985 (support services in transport).
The applicable GST rate is 18% (with ITC eligibility).

If the flight booking is part of the tour package, the entire package falls under 5% GST (without ITC).

If billed separately (as a service fee), then 18% GST applies only on the service fee, not the flight ticket value (since airline tickets are exempt from GST).

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 September 2025 Good luck..

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