As per the Schedule of GST Rates for services approved by the GST Council on 19th May, 2017, supply of tour operator services attracts 5% GST rate with no input tax credit. Also, services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India would continue to be exempt from GST,
GST ON AIR TRAVEL AGENTS:-
4.1 As a general rule, air travel agents are required to pay 18% GST on
commission earned from airlines and also service charges,
handling charges etc. (by whatever name called) collected from the
customers / passengers. There is no bar on air travel agents in
availing ITC on input services to support the output services of
travel agents.
4.2 As an alternate to GST payment in the above manner, rule 32 (3) of
CGST rules, 2017 permits an air travel agent to discharge GST at
fixed percentage of basic fare on which commission is normally
paid by the airlines to the agent. In such a case, the effective
value and the effective rate of GST is 0.9 % domestic and 1.8% on international booking