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

GST on Deposit incentive given by airlines to travel company

28 January 2021

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

Reply
Follow
Share

2 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (3303 Points)
Replied 28 January 2021

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

AddisonLogan (AddisonLogan) (24 Points)
Replied 03 September 2022

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