I have a query regarding gst on commission recd by travel agent from international hotel not because of travel agent book hotel on behalf of customers but because of just hotel ask agent to suggest name of hotel to passenger and if customer book hotel on their own, travel agent receive commission. Here neither travel agent book hotel nor receive payment from customer and also not issue invoice to customer. here hotel received payment from customer and hotel raised invoice directly to the customer. travel agent just invoice for commission to hotel.
QUERY: What would be the implication under GST on receipt of commission.
GST Not Applicable on Commissions for Travel Agents' Intermediary Services Outside India under Section 13(8)(b) IGST Act A query was raised about the Goods and Services Tax (GST) implications on commissions received by a travel agent from an international hotel. The agent suggests hotels to passengers, and if a customer independently books a hotel, the agent receives a commission. The agent neither books the hotel nor interacts directly with the customer financially. Responses indicated that GST applies if the commission exceeds the threshold limit, and the service is classified as 'Intermediary Services' under Section 13(8)(b) of the IGST Act, 2017. Since the service location is outside India, it falls outside the GST ambit. (AI Summary)
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TaxTMI 
