Gst on tourvoperator

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This discussion addresses the correct GST treatment for tour operators booking air tickets via an airline's portal. The airline charges GST on commission and remits it, seemingly on a reverse charge basis. The core questions are whether this practice is legally compliant and how the tour operator should declare their taxable turnover in GSTR3B and GSTR1, especially since the RCM notification is unclear.

Sabita Sahoo

Sabita Sahoo (Querist)
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13 February 2020 Being a tour and travel agent makes booking of air ticket for go India airline through goindia airline site.The goindia airline prepare bill for commission amount charging gst@18% on behalf of travel agent.The travel agent on approval online print the said bill.The goindia airline after deducting gst amount remit the amount to the travel agent wallet.As per law travel agent has to discharge his tax liability on commission amount but goindia airline deposit the said tax himself.Is the practice followed by goindia is correct? If yes,what would be the taxable turnover to be declared by the travel agent in his gstr3b and gstr1?

Amol S Joglekar

Amol S Joglekar (Expert)
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14 February 2020 Go india is doing it on reverse charge basis. It is in a way good for you, because Go india is depositing GST on your behalf

Sabita Sahoo

Sabita Sahoo (Querist)
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14 February 2020 What would be the turnover to be declared by travel agent in GSTR3B and GSTR1.Again the gst deposited by goindia airlines under RCM not notified by govt.

Sabita Sahoo

Sabita Sahoo (Querist)
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14 February 2020 Pl.sir clarify my doubt.

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