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GST on Travel agent, Goods and Services Tax - GST

Issue Id: - 114457
Dated: 6-1-2019
GST on Travel agent

  • Contents

Respected Sir


I have few queries on travel agents/ tour operator services. PL give your expert opinion.

1) Travel agent booked ( blocked) 100 air tickets for rs 5000 per tickets from IATA agent. IATA agent will pay commission if RS 200 per tickets with 18% GST. He in turns slaes air tickets with his markup of RS 500 per ticket. He raise of bill of 5500/- on his customer. On which amt GST is applicable? Is it applicable on 5500 or only on 500/-.

2) some times it happens that out of 100 tickets he is able to sale only 85 tickets and for balance tickets he will pay cancellation charges and book cancellation charges as expenditure in his books of account.As he blocked 100 tickets can it be said that he is selling space and not tickets? If yes then on which amt and at which rate GST is applicable?

3) Travel agent of Gujarat books only hotel for his customer in Gujarat from a Bombay based booking agent of hotel Taj. Can Bombay based travel agent raise 18% IGST bill to Gujarat Travel agent? Or he has to raise csgt and Maharashtra sgst bill? Can Gujarat based travel agent claim ITC on bill raised of 18% igst raised by Bombay based booking agent. Or booking of hotel accommodation will be considered as tour operator services and GST rate is 5% without ITC.

4) Gujarat based travel agent books Dubai tour package from Dubai based travel agent. Can it be considered as import of service and Gujarat based travel agent have to pay GST on rcm basis?

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Showing Replies 1 to 2 of 2 Records

1 Dated: 8-1-2019

Dear Querist,

Query-wise reply is as under:-

Reply to Query No.1. It is covered under Rule 32(3) of CGST Rules, 2017 which reads as under :-

The value of the supply of services in relation to booking of tickets for travel by air provided by an air travel agent shall be deemed to be an amount calculated at the rate of five per cent. of the basic fare in the case of domestic bookings, and at the rate of ten per cent. of the basic fare in the case of international bookings of passage for travel by air.

Explanation. - For the purposes of this sub-rule, the expression “basic fare” means that part of the air fare on which commission is normally paid to the air travel agent by the airlines.

Also see the following case law pertaining to pre-GST era:-


Reply to Query No.2. I do not concur with your view that travel agent is selling space and not ticket.

Reply to Query No.3: Activity of booking in this situation inter-State sale.

Reply to Query No. 4 Section 13 (8) (b) of IGST Act, 2017 has to be read with CBIC Circular No.78/52/2018-GST dated 31.12.2018 to arrive at correct decision.




2 Dated: 9-1-2019

In continuance of my reply dated 8.1.19, I further add as under:-

Query No.1 : Travel agent is a pure agent but we cannot take the shelter of Rule 33 of CGST Rules, 2017 inasmuch as the valuation in relation to booking of tickets for travel by air is specifically covered under Rule 32 (3) of CGST Rules, 2017

Query No.4 It is import of service and tax has to be paid under RCM.


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