GST On Hotel Booking for Travel Agents! Please Help Please!

Thank you for the input sir, so we are actually paying about INR 5000 in GST Taxes, Plus INR 15000 in CGST and SGST, plus INR 1000 5% GST for transport (considering the total value for transport is about INR 20000, and Hotels INR 80000) plus TDS plus income tax?

And if we are incorporated in Rajasthan and we book a Hotel in Rajasthan which charges 18% tax, can we get all of the 18% tax back?

Once again thank you for the reply sir!

 Tour Operator service provider:
How does he differs from a Pure Agent?
A pure agent only facilitates the transaction and helps the travellers to identify various supplier as per their requirements. Whereas, the tour operator does the entire booking of tours and the total fees charged shall include his margin. Hence he becomes a tour operator service provider and the entire service value is leviable under GST.
What rate is applicable for Tour Operator?
GST Rate is 5% with a restriction on availing of Input services (CGST @ 2.5% and SGST @ 2.5% or IGST @ 5%].
Is there any condition to be fulfilled by the Tour operator?
Yes. The tour operator has to fulfill all the following condition to avail composite GST Rate @ 5%.
 The bill issued for the supply of this service indicates that it is inclusive of charges of accommodation and transportation required for such tour and
 the amount charged in the bill is the gross amount charged for such a tour. Is there any restriction in availing Input Tax Credit?
Yes. The input tax credit of both goods and services not available. However, the ITC of input service is available in the same line of business. (Eg: a tour operator service procured from another tour operator service).
Whether the service provider collects CGST & SGST or IGST?
Yes. It may vary depending on the place of supply.

Why you can't recover the hotel GST:

• Tour operator services at 5% are conditional: no ITC on goods and services used, except ITC on tour operator services bought from another tour operator (Notf 11/2017-CT(R), Sl. 23(i)). So the 18% hotel GST cannot be offset against your 5% output tax. It is a cost.

• Even if you opted for the normal rate (as a pure agent or air travel agent), hotels charge CGST + SGST of the hotel's State (place of supply = hotel location, Sec 12(3) IGST). You can't take that in your home-State GSTIN unless you are registered in that State.

• Alternative structures:

(a) Act as a pure agent: the hotel bills the customer directly. You charge 18% only on your commission or service fee, with ITC on your own costs. Rule 33 conditions apply.

(b) Itemise the package. If you are not a "tour operator" (i.e. you only book accommodation as an agent), your service is SAC 998552 at 18%, with ITC on your inputs.

• For outbound tours (outside India), place of supply rules (Sec 13(9)/(12)) can make the package non-taxable in part. Get the structure right before quoting.