GSTR 1/Sales for Travel Agent/Tour Operator

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This discussion clarifies how travel agents acting as pure agents should report their sales in GSTR 1. It explains that only processing charges are subject to GST and should be shown as the taxable value on the invoice. The face value of travel tickets, when booked on behalf of a client, should not be included in GSTR 1 or counted towards the threshold limit for GST registration. The P&L can reflect ticket income and expenses in a single ledger, netting to zero.

Namita Bhade

Namita Bhade (Querist)

28 June 2022 Hello CCI Members

If a travel agent acting as a pure agent and issuing Invoices with travel ticket amount and processing charges with GST on Processing Charges at the rate 18%.

1. How the Invoice will be shown in GSTR 1? Total Invoice value will include travel ticket amount? and taxable amount will be only processing charges amount?

2. Is the travel ticket amount is to be shown in GSTR 1 anywhere?

3. Will the travel ticket amount will be counted while counting threshold limit?

4. Is P&L of Travel Agent will show sales and purchases of tickets amount bought on behalf of customer?

Please help.

Thanks in Advance

CA Altamush Zafar

CA Altamush Zafar (Expert)

28 June 2022 Generate separate bills for tickets reimbursement and separate for your supplies

Udaya Chandran

Udaya Chandran (Expert)

29 June 2022 Please refer to my opinions as below:
1. Show only taxable value (processing charges) in GSTR 1
2. You don’t need to show the ticket value in GSTR 1
3. It will not be considered for computing threshold limit
4. In P&L, you can use one single ledger for both income and expenses of travel ticket, eventually it will become zero.

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