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Tour opeator

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This query is : Resolved

Sabita Sahoo (Querist)
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22 February 2020 Rate if gst on tour operator is 5% without ITC but ITC can be availed from same line of business.I.e if purchase from another tour operator,then ITC can be availed.please explain with an example.because if purchase from another tour operator it will fall on tour operator support service and ITC can not be availed as per SL no.23(iii)sac 9985

CA Anita Bhadra

CA Anita Bhadra (Expert)
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23 February 2020 ITC can be availed for tour operator service to another tour operator. Tour operator support service as per Sl 23, SAC 9985 is only a part of tour operator service.

ITC is not available If the tour operator is providing only a support service ( ie rides inside the amusement park etc ) and not issuing consolidated bill to the guest ( recipient ).

For better understanding of the concept refer following link - Advance ruling:-
https://taxguru.in/goods-and-service-tax/ancillary-services-tour-operators-support-services-18-percent-gst.html

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