Air travel Agentss

Air ticket bookings done by Air travel Agents.

Agents will get Commission from Airlines & Service charges from customers.

What is the GST Rates & Procedures
Replies (3)
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.

Processing/service fee for booking of tickets for the customer rate is 18%



Commission income from the airlines for booking domestic air tickets rate is 18%
invoice value is 5% of basic fare

Commission income from the airlines for booking international air tickets rate is 18%
invoice value is 10% of basic fare
ITC can be availed on Fixed Assets & Office Expenses right
Yes ITC can be availed

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