TMI BlogTour Operators GST RateX X X X Extracts X X X X X X X X Extracts X X X X ..... Our client is into the business of tour operators. His total tour operating income is say ₹ 40 lakhs and total tour cost is say ₹ 35 lakhs. Is he allowed to charge GST @18% on the profit i.e. 18% on 5 lakhs (40-35)? Another scenario is, is it allowed to charge 18% on total tour operating income i.e. 18% on 40 lakhs, along with Input tax credit (like GST paid on Hotel booking, transpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation cost)? - Reply By Rajagopalan Ranganathan - The Reply = Sir, According to Para 2 (zzm) of Notification No.12/2017-Central Tax (Rate) dated 28.6.2017 [with effect from 01.07.2017]) tour operator means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mode of transport, and includes any person engaged in the business of operating tours. According to Sl. No. 23 of Notification No. 11/2017-Central Tax dated 28.6.2017 as amended the rate of tax applicable to tour operator service is 2.5% (CGST) and 2.5% (SGST) provided that credit of input tax charged on goods and services used in supplying the service has not been taken and the bill issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for supply of this service indicates that it is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for such a tour including the charges of accommodation and transportation required for such a tour. If service provided is only for hotel booking and of hotel charges are recovered separately on actual ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis, then GST will be payable @18% treating such service as suppport service of tour operator service. - Reply By Ganeshan Kalyani - The Reply = GST@5% on tour operator service is applicable provided that credit of input tax charged on goods and services used in supplying the tour operator service, other than the input tax credit of input service in the same line of business (i.e. tour operator ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service procured from another tour operator)] has not been taken the bill issued for supply of this service indicates that it is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for such a tour including the charges of accommodation and transportation required for such a tour. - Reply By JIGAR SHAH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - The Reply = Dear all, Thank you for the response towards the query. - Reply By Girish Patil - The Reply = Hello Sir, I am tour operator and I have one query regarding GST filing. E.g. My Tour Package is of 10,000 INR Profit = 3000 INR Paid to Hotel = 3000 INR Paid to Taxi = 3000 INR Paid to Flight/Train = 1000 INR In this case how much GST I have to Pay and what documents need to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attached? Thanks in advance Regards, Patil - Tour Operators GST Rate - Query Started By: - JIGAR SHAH Dated:- 18-1-2019 Goods and Services Tax - GST - Got 4 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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