Hotel Booking under GST by an agent

[MANOJ KUMAR]

We have a query regarding Hotel Booking done by Registered Travel agent for another Registered Travel Agent and Direct Guests

For eg A Registered Person (Mr A) in the course of his business approaches us for Hotel Booking ( Mr B). We i.e Mr B books hotel for him by charging lets say ₹ 10000 which includes our mark up ₹ 1000 . Kindly note that ₹ 1000 mark up is not disclosed to Mr A. In the said transaction, we have also earned commission from Hotel ₹ 500. How to charge GST to Mr A AND On what amount ₹ 10000? . On what amount Mr B need to pay GST i.e ₹ 10000, ₹ 1000 , ₹ 500 ? Whether Mr BB can collect GST on ₹ 500 @ 18% from Hotel ?

If instead of Mr A , we have dealt with Mr C who is an unregistered agent ... then what will be the GST Liability of Mr B?And whom Mr B need to collect GST ?

If instead of Mr A, we have dealt with Mr D who is directly a guest ....then what will be the GST Liability of Mr B?. And whom Mr B need to collect GST ?

Pls share the views.

[RAMESH PRAJAPATI]

Since you are hotel booking agent, you should charge GST on full value recovered from client.

AI Summary

GST on full value recovered: agents must charge tax on the total amount invoiced to the client. Hotel booking agents must charge GST on the full value recovered from the client. When an agent invoices a client a gross amount that embeds an undisclosed markup and also receives a separate commission from the hotel, GST is to be applied to the total amount charged to the client rather than only to the markup or the commission; this approach is stated to apply whether the client is a registered agent, an unregistered agent, or a direct guest.