Taxi booking on commission basis

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Abhishek Kumar

10 Points Joined April 2018

I own a travel agency and deal basically in ticket booking, tour packages and money transfer etc. My firm (sole proprietorship) is GST registered with relevant SAC codes.

Sometimes my customers ask for providing taxi for their travel requirements and I arrange thru other taxi owners and charge my commission amount. I don't own any vehicle for rental purpose. So, in such case which SAC code applies to me and how should I issue GST bill for amount charged from customers. Usually I take complete amount from customers and pass to original owner after deducting my commission.

Replies (3)

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

The expression “tour operator” is defined in entry No. 23 of notification No. 11/2017-Central Tax (Rate) dated 28.6.2017 as under:-

“Tour operator” means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sight-seeing or other similar services) by any mode of transport and includes any person engaged in the business of operating tours”.

So As to above it's a ancillary services to your principal supply , so have to charge GST to customer @ 5% including the taxi hire charge as composit supply & take the bill from Taxi owner

Abhishek Kumar

10 Points Joined April 2018

Thanks for your reply. But pls explain me thru an example -

I provided taxi service to my customer and charged Rs. 1200/- . I've to give Rs. 900/- to the taxi owner as per our agreement (as I'm intermediate agent) and retain remaining 300/- as my profit. Now, how will I generate the GST bill/invoice for Rs. 1200 to the customer, so that he can claim from his employer.

Shall I give bill for the complete amount i.e. Rs. 1200/- , OR only for my profit of Rs. 300/- ?

What if the taxi owner is NOT gst registered and hence can't provide GST bill for his charges (i.e. Rs. 900/-) ?