Tour opeator

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This discussion clarifies Goods and Services Tax (GST) for tour operators. It confirms that tour operators can claim Input Tax Credit (ITC) on services procured from other tour operators, even though the standard rate is 5% without ITC. The GST rate for using your own vehicle for transportation and sightseeing remains 5%, provided the invoice reflects the gross amount for the tour, including these services. It also touches upon the place of supply rules for air ticket bookings and commission.

Sabita Sahoo

Sabita Sahoo (Querist)
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14 February 2020 (1).As per central tax(rate) notification gst rate on tour operator is 5% without ITC.But a tour operator availing gst on tour package service procured from another tour operator.Is he allowed to avail the said ITC?(2).If a tour operator provide his vehicle for transportation and sightseeing,what would be gst rate he would charge in his invoice?

CA Anita Bhadra

CA Anita Bhadra (Expert)
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15 February 2020 Yes - Tour operator availing services from another tour operator can avail ITC
GST Rate is 5% with NO ITC [other than the ITC of input service in the same line of business (i.e. tour operator service procured from another tour operator-inserted on 25/01/2018]

The rate for own transportation used for sightseeing will be the same(5%):-
As per notification:- The bill issued for supply of this service indicates that it is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for such a tour including the charges of accommodation and transportation required for such a tour.

Sabita Sahoo

Sabita Sahoo (Querist)
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15 February 2020 A travel agent of odisha makes air ticket booking for client of odisha in Indian airlines (registered in Mumbai).Now Indian airlines give commission to the travel agent.What would be the place of supply? Shall the bill issued by travel agent of odisha to the Mumbai airlines charging igst?

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