LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Gst on Air Travel Agent

SUMIT KUMAR BHANSALI (ARTICLED ASSISSTANT) (27 Points)

05 June 2017

What will be the rate of tax in gst on air travel agents and tour operators? Is there any preferred or composition scheme available for them in gst?

Reply
Follow
Share

11 Replies

Piyush Tanwar (Assistant Manager - Accounts) (1432 Points)
Replied 05 June 2017

Tour Operators - 5% GST (with No ITC)

Air Travel Agent - 18%

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 05 June 2017

No composition scheme for service providers

Vikram (Financial Accountant) (43 Points)
Replied 06 June 2017

What will be GST For Car rental lke ola cabs?

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 06 June 2017

For services like ola, uber. It would be covered under e-commerce operators as aggregator. It would be a deem sale and gst to be paid by e. Commerce operator

Pranoti Shah (CA Job) (61 Points)
Replied 06 June 2017

GST For Car rental like ola cabs, uber cabs would be at 5%

1 Like

Vikram (Financial Accountant) (43 Points)
Replied 06 June 2017

Thanks Pranoti!

sumtee (Proprietor) (22 Points)
Replied 18 June 2017

Dear Sir,

I run a small trave agency without service tax registration. In my small town i did consult to service tax office and CA. but most of them are unclear about the current service tax or gst for travel agency and tour operators. I am confused as the same is not even communicated by department via email. I have the following concerns.

1. What is the current rate slab for travel agency.

2. Airtickets, Domestic Packages, Visa, Taxi, Hotel booking, International packages all used to have different rates. Now people say its is flat 9% on all services. We book all this via a suppliers in delhi. Our suppliers charges a tax of 9% on packages. Do we need to again charge a 9% from customer for the total bill amount or just 9% on the commission we add to the bill.

3. How is this process of taxing on services work for travel agency.

4. Travel industry says the new GST will kill of all small scale travel agencies. Please guide us.

DIVYA VARGHESE (Article) (22 Points)
Replied 29 June 2017

we are running company which act as agent between goods owners and truck owners.we collect the entire freight from the truck owners and after deducting our service charge we make payments to truck owners.In this case should we raise invoice for the entire freight amount to the goods owners charging GST on the entire amount?

K CS (17 Points)
Replied 01 July 2017

I run a proprietorship firm which is a B2B sales agent working under Goair, indigo etc and also under travel portals like yatra, via. I ahve not yet received Provisional ID for GST I get commission from air ticket sales and TDS is deducted. i.e I book tickets on behalf of Airlines and travel portals and sell them. Now since th GST is in force , Do I have to charge 5% GST on economy class from customer even if 5% GST is already charged by the Airline in the total airfare ? When I booked a ticket today from Via portal as their b2b agent, in the ticket cost, 5% GST was applied by airline and total fare was 3500. But when the printout was taken the GST amount was deducted and final print came 3379. So in this case what do I do ? shall i charge the customer 5% GST again? Also do i need to rasie separate invoice for customer even though Via or the airline itself will raise invoice?

H P (Business) (2 Points)
Replied 19 July 2017

We are a Travel Agent from Mumbai. We book Air Tickets, Hotel, Cars.

As we are NON IATA agent, we book tickets from IATA Agent and sell it to Direct Customer. As IATA Agent charges us 18% on Commission, but what % of GST should we charge to Direct Consumer on Ticket fare

Same goes with the Hotel, As we book direct Hotel, Hotel Charges us 12% or 18% or 28% on Room Tarrif, , but what % of GST should we charge to Direct Consumer on Bill Value

Answers of this will give a clear idea to many off small travel agents like us.

Helpful answers are appretiated.

Thanks.

Feelfree to contact us if required.

Mahender Lalwani (4 Points)
Replied 02 August 2017

Please read the below and advise

Basic airfare-3000
UDF-300
PSF-200
Fuel tax-1000
GST 5% charged by airline-150
Total cost of air fare 4650 INR.

Now an agent booked this ticket for customer XYZ and got 45 INR (50-TDS 10%) as commission from airline.

Agent charged Mr XYZ an extra 100 INR as his service fee . so Mr XYZ paid in all 4750 to agent. and agent paid 4750-100-50 = 4600 to the airline.

Now please advise for the agent, how much GST (rate and amount ) he has to pay to govt and on what value and how can the agent raise TAX invoice and on whose name ?

what all components in this case there should be mentioned in the customer-invoice given to customer