TaxTMI 
TaxTMI 
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.
tour operator booking hotels outside india - is reverse charge applicable
22 Feb 2018 
10 Replies 
11112 Views Asked by
Import of services: whether reverse charge applies when a tour operator books foreign hotel accommodation for Indian clients.
Whether GST reverse charge applies hinges on import-of-services criteria and the tour operator's role. If place of supply for hotel accommodation is the location of the immovable property (the foreign hotel), the transaction is not an import of services and reverse charge would not apply. Counterviews treat the tour operator as an intermediary, arguing intermediary classification brings the supply within IGST provisions attracting reverse charge. The debate excludes certain event and immovable-property provisions as inapplicable, and raises related questions on input tax credit when reverse charge is paid. (AI Summary)
Whether GST reverse charge applies hinges on import-of-services criteria and the tour operator's role. If place of supply for hotel accommodation is the location of the immovable property (the foreign hotel), the transaction is not an import of services and reverse charge would not apply. Counterviews treat the tour operator as an intermediary, arguing intermediary classification brings the supply within IGST provisions attracting reverse charge. The debate excludes certain event and immovable-property provisions as inapplicable, and raises related questions on input tax credit when reverse charge is paid. (AI Summary)