tour operator booking hotels outside india - is reverse charge applicable

[Richa Goyal]

We are a tour operators. We book hotels on behalf of our clients outside India. The hotel in the other country raises bills on us as tour operators and We in turn raise bills on our clients in India. Shall we be liable for GST on the invoice received from the hotel outside India for booking on behalf of our clients. Kindly guide in view of section 11 (3) of IGST act, 2017.

AI Summary

Debate on GST's Reverse Charge Mechanism for Tour Operators Booking Hotels Abroad: Section 13(8)(b) of IGST Act 2017 A discussion on whether reverse charge mechanism (RCM) under the Goods and Services Tax (GST) applies to tour operators booking hotels outside India. The main query is if GST is applicable when a hotel outside India bills a tour operator, who then bills clients in India. Experts debate the applicability of sections 11(3), 13(5), and 13(8)(b) of the IGST Act, 2017. The consensus leans towards the service being an intermediary service under section 13(8)(b), thus subject to GST under RCM. However, some argue that since the place of supply is outside India, RCM may not apply.