FOR INPUT TAX CREDIT FOR TRAVEL AGENT

[Guest]

Dear sir m a travel agent hu my work is hotel booking same state and other state se kar the hu to muje kis kis per input credit mil sakta h please guide me

[ANITA BHADRA]

You are a travel agent and book hotel in same state and other state .

You must be raising bill to your client /hotel for charging your commission.

GST will be applicable @ 5% with NO INPUT TAX CREDIT

[KASTURI SETHI]

I agree with the views of Ms.Anita Bhadra Ji. I further express my views as under :-

"Travel Agent" acts as a "Pure Agent". Expenses incurred while providing service are not to be included under Rule 33 of CGST Rules,2017. On what basis querist is asking for ITC ? Where is his input service (inward supply) in relation to output service (outward Supply) ? Querist may not be aware of the concept of 'pure agent' and valuation method for his outward supply."

[Ganeshan Kalyani]

In case of pure agent model the pure agent gets all the expense invoice in the name of the client. The GSTIN of client is mentioned on the invoice. Hence, credit will not be accruing to pure agent.

[DR.MARIAPPAN GOVINDARAJAN]

ITC is not applicable in your case.

AI Summary

Input tax credit denied where travel agent acts as pure agent and underlying invoices are issued in the client's name. A travel agent charging commission on hotel bookings is generally not entitled to input tax credit; GST on the commission is treated as the agent's outward supply without ITC. If the agent functions as a pure agent, underlying hotel invoices are issued in the client's name with the client's GSTIN, and any credit on those expenses accrues to the client rather than to the agent.