Gst- reverse charge applicability on agent

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SOUMYA I SHETTY (Querist)
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14 July 2017 Whether Travel agent required to pay GST on reverse charge for import of services (hotel booking) from online portal (like expedia) of company located outside India.
If Reverse charge applicable then on which value?
Whether on Gross amount i.e. hotel accommodation +Service charges or only on Service charges

Eg: ABC Travel Agents (registered in India) is booking hotel (located outside India) for his customers from an online portal (www.expedia.co.in) of company located outside India.
ABC Travel agent is paying hotel accommodation charges on behalf of customer at the time of booking hotels.
Later he receives commission from Expedia for hotels booked.
Whether in this case ABC Travel agent have to pay gst on reverse charge for hotel accomodation charges, as expedia is located out of India

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 July 2017 ABC Travel agent need not pay gst on reverse charge for hotel accommodation charges, as expedia is located out of India and hotel service is provided out side India for which GST not applicable.

SOUMYA I SHETTY

SOUMYA I SHETTY (Querist)
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15 July 2017 Thank you for your reply
The above mentioned transaction is import of services. As the supplier is out of India, Recipient is in India and place of supply is in India.
Place of supply in case of an immovable property located outside India is Place of recipient. As a result place of supply is in India.
It is a taxable supply of service.Hence GST applicable.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 July 2017 Place of supply in case of an immovable property is location of the property.

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