Gst on tour operator

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This query is : Resolved

Sabita Sahoo (Querist)

02 March 2018 As per gst provision gst @5% will be chargeable on tour operator on their bill to customer without benefit of ITC.If tour operator makes tour arrangement he gets commission from different client I.e hotel,booking etc.Thus if a tour operator receives commission as well as receive payment customer then is he liable to pay gst @18% and 5%?Is ITC be allowed against 18% output liability?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 March 2018 18% GST applicable on commission received, ITC can be claimed on it.

Sabita Sahoo

Sabita Sahoo (Querist)

02 March 2018 You mean to say that 18% on commission and 5% on the bill amount to customer ,both will be chargeable.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 March 2018 Yes both will be chargeable.

Sabita Sahoo

Sabita Sahoo (Querist)

02 March 2018 As per your view gst @18% is to be charged on commission received with benefit of ITC.In what source ITC will be accrued?I.e in hotel booking he purchase room,for transportation he hire olla/uber etc.the said invoices of purchase,ITC is not allowed as output liability is 5%.I want to know on which purchase he can avail ITC against output tax liability of 18%?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 March 2018 If there is no input tax paid for the out put service then no ITC can be claimed.

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