GST on Deposit incentive given by airlines to travel company

Hi, GST on Deposit incentive given by airlines to travel company. Example: Rs. 1 crore uploaded in Airlines ID and in turn Airlines updated Company balance by rs 1.1 crore in that case whether Rs 10 lacs will be liable for GST in the hands of the company

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Quick Summary
This discussion clarifies the Goods and Services Tax (GST) implications for travel companies receiving deposit incentives from airlines. If an airline credits an extra amount on a deposit, such as Rs 1.1 crore on a Rs 1 crore deposit, the additional Rs 10 lakh is generally subject to GST. The airline will typically issue an invoice for this amount later. The discussion also touches upon a potential new fee for a reserve fund to cover passenger obligations during force majeure events or airline bankruptcies, which is not expected to increase ticket prices.

yes. obviously. that extra 10 lacks would be collected by airlines  later and issue the invoice to that extent. so comes under GST.

Soon a new fee may be introduced from the sale of tickets to form a reserve fund, the money from which will go to fulfill the obligations to air passengers in case of force majeure. In case of an airline company bankruptcy, the fund will spend money to transfer its customers to other flights, or the fund will pay for a refund for the failed flight. The fund will not cause an increase in ticket prices. The last time I bought business flights 20 %, I wasn't told I had to pay anything else. You may have misunderstood the ticket price information

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