RAHUL B. (CHARTERED ACCOUNTANTS) (92 Points)
08 July 2017Can anyone explain how a air ticket seller travel agent will apply GST ? Whether 5% on base fare or 18% on comission or 0.9% of base fare ? A confusion prevails amongst the agents and most of them are charging 0.9% of base fare , but no such rates are mentioned in GST act. So please kindlty clarify it
Guru
(17 Points)
Replied 08 July 2017
Taxable Value is 5% of base fare for domestic and 10% for international.....GST is 18% on such 5% = 0.9%
RAHUL B.
(CHARTERED ACCOUNTANTS)
(92 Points)
Replied 08 July 2017
Pls can you explain me with example :
Like if Indigo Issues a bill of
base Fare : 4000
Surcharge etc: 2000
Total 6000
then 5 % will be charged on 4000 say Rs. 200/- GST is added.
Now if Agent A purchases it at 6200/- and sell it at 6700/- how will GST be charged.
Agent has also received commission from Indigo say Rs. 50/- and also earning 500/- from mark up.
Please say me how will he charge GST ? Also tell me about input credit he can avail ?
RAHUL B.
(CHARTERED ACCOUNTANTS)
(92 Points)
Replied 08 July 2017
i didnt find any such rule for chargin 18% of 5 % of base fare, Pls send me a link or something which says it ?
I found this link wherein no mention of 18% is there
https://cleartax.in/s/impact-of-gst-on-air-fares
Guru
(17 Points)
Replied 08 July 2017
https://www.cbec.gov.in/resources//htdocs-cbec/gst/valuation-gst-rules-17052017.pdf
Check 6 (3) which is the deeming provision.
As regards the commission part there is no clarity and the department has to sort out such issues.
gaurav sain
(Artical Trainee at Talati & Talati)
(28 Points)
Replied 25 February 2018
gaurav sain
(Artical Trainee at Talati & Talati)
(28 Points)
Replied 25 February 2018
gaurav sain
(Artical Trainee at Talati & Talati)
(28 Points)
Replied 25 February 2018
Chandani Gadhia
(Audit Executive)
(63 Points)
Replied 08 June 2018
Hi,
It is applicable to main IATA Agent and not to subagent
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