Principal basis: If the Tour operator avails any services from another Tour Operator without ITC, Do we charge GST on the Markup Value of 5 % or Total Tour Packages cost or 18 % or 5 % only on Markup?
Example :
We purchase a complete Tour Package from a B2B tour operator for Rs.50,000 ( includes, flight, visa, hotel, transfer, and sightseeing) and facilitate the service to our B2C client with a markup of Rs 1000.
Which option is correct
50,000 * 5% = 2,500, In this format the client gets charged 5 % GST twice.
or
1000 * 18% = 180
Your valuable assistance is highly appreciated.
Thanks!
CPH
CAclubindia
