GST Update on rate applicable on ancillary services provided to tour operators

Last updated: 21 April 2020

Court :

Brief :
The applicant is engaged in the business of providing the tour operators with the ‘Ancillary services’ such as Elephant Ride, guide charges, assistance charges, home host dinner, lunch/dinner at local restaurants, boat ride, camel ride, and saree turban tying, etc. Moreover, ancillary services do not include planning, scheduling, arranging tours, organizing tours by any mode of transportation. The Applicant receives service orders from the main tour operator to provide a range of services to the passenger/ tourist. There is a contractual understanding between the tourist and the main tour operator to provide a complete packaged tour. The applicant raises bill for the ancillary services provided and a consolidated bill is raised by the main tour operator to the customers. The important thing to note here is that the accommodation and transport charges are included by the main tour operator in the bill, not by the applicant.

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