Gst on travel agents

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2017 Dear Experts.

We have two kind of services under travel agents.

1) Ticket booking only Air/Railway
2) Tour operator (which includes ticket taxi stay boarding n lodging)

What is the tax rates for both these services under gst

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2017 please help in this regard

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

27 July 2024 ### GST on Travel Agent Services

In GST, travel agent services are categorized differently based on the type of service provided. Here’s a breakdown of the GST rates and applicability for the two kinds of services you mentioned:

#### 1. Ticket Booking Services (Air/Railway)

**Service Type**: Providing services only for booking air tickets or railway tickets.

- **GST Rate**: **5%** (with no input tax credit).
- **HSN/SAC Code**: **9985** - "Tourism services" which include "ticket booking for air or railway".
- **Applicability**: This rate applies to services where the travel agent is solely involved in booking tickets and not in any other supplementary services like accommodation or transportation.

#### 2. Tour Operator Services

**Service Type**: Comprehensive services that include not just ticket booking but also taxi services, boarding, lodging, and other related services.

- **GST Rate**: **5%** (with input tax credit) for "Tour Operator Services" where the entire tour package is provided.
- **HSN/SAC Code**: **9995** - "Tour Operator Services".
- **Applicability**: This rate applies when the tour operator provides a comprehensive travel package that includes various elements like accommodation, transport, meals, etc.

### Key Points:

1. **Ticket Booking Services**:
- This includes only the booking of tickets (airline, rail, etc.) and does not involve other services.
- GST of **5%** is applicable.
- **Input Tax Credit (ITC)** is **not available** for the travel agent on this service.

2. **Tour Operator Services**:
- This covers a complete package of services, including but not limited to, accommodation, transportation, and meals.
- GST of **5%** is applicable on the total amount charged for the tour package.
- **Input Tax Credit (ITC)** is available for the tour operator on inputs and input services used to provide these packages.

### References:

- **Notification No. 11/2017-Central Tax (Rate)**: Provides detailed provisions for the rate of GST applicable to various services including travel and tourism.
- **HSN/SAC Codes**:
- **9985**: Ticket Booking Services
- **9995**: Tour Operator Services

**Practical Consideration**:
- Ensure to maintain proper documentation and segregation of services provided. For ticket booking, no ITC is available, while for tour operators, ITC can be claimed on inputs used for providing the package.

For specific cases or more complex scenarios, consulting a GST professional or tax advisor is advisable to ensure accurate compliance with the GST regulations.

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