Agents will get Commission from Airlines & Service charges from customers.
What is the GST Rates & Procedures
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Quick Summary
This discussion clarifies the Goods and Services Tax (GST) implications for air travel agents. It details that agents receive commission from airlines and service charges from customers. Both domestic and international air ticket bookings incur an 18% GST rate on the agent's commission or service fee. Specifically, the service fee for customers is 18% of the basic fare, while commission from airlines for domestic tickets is also 18% of the basic fare. For international tickets, the commission is 18% on 10% of the basic fare. Importantly, agents can claim Input Tax Credit (ITC) on fixed assets and office expenses.