Air Travel Agent

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Hasmukh Kothari (Querist)

21 October 2019 Dear Experts,

I have query about applicability of GST Law applicable to this Air travel agent industry owing to nature of business which is different from other industry.

It would be helpful if someone can share notes regrading place of supply, ITC, applicable GST rate which is applicable to them with me.

Thanks in advance

CA Anita Bhadra

CA Anita Bhadra (Expert)

24 October 2019 Go through the article published in Taxguru. It will help you to understand the concept ( link as indicated below )

https://taxguru.in/goods-and-service-tax/gst-tour-operators-travel-agents.html

Hasmukh Kothari

Hasmukh Kothari (Querist)

25 October 2019 Thank you so much sharing the article

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

29 October 2026 Air travel agents can opt to pay 18% on a deemed value of 5% of the basic fare (domestic) or 10% (international) under Rule 32(3), instead of on actual commission; ITC on input services is allowed and the place of supply follows Sec 12/13 IGST rules.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

29 October 2026 For air ticketing, Rule 32(3) lets the agent pay 18% on 5% of the basic fare (domestic) or 10% (international) as the value of service, instead of on the actual commission; the ticket fare itself is collected as pure agent and is not the agent's taxable value.

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