B2B Travel Agent

[sarang takalkar]

Respected,

When travel agent deals in B2B category, there is double taxation

Supplier pays GST and again the agent pays GST on total amount.

Is there any clarification ?

thanks,

[DR.MARIAPPAN GOVINDARAJAN]

Supplier pays tax the supply provided by him. Agent pays GST for the commission obtained for his service rendered to the principal. The principal will take input tax credit on the tax paid to the commission to the agent. What is the doubt in it?

[KASTURI SETHI]

I support the views of Dr.Govindarajan, Sir. I further express that tax is required to be paid on value addition by the agent and not on full amount. Hence no double taxation. No need to add further as already the matter has been crystal clear by Dr.Govindarajan, Sir.

[Ganeshan Kalyani]

As rightly replied by Sri Mariappan Sir and Sri Kasturi Sir, the tax is on the value addition only and not on the entire amount.

AI Summary

GST Double Taxation Concerns in B2B Travel: Supplier Pays for Supply, Agent for Commission; Input Tax Credit Available A travel agent raised a query about perceived double taxation in the B2B sector under GST, where both the supplier and the agent pay GST. Three responses clarified that the supplier pays GST on the supply, while the agent pays GST on the commission earned. The principal can claim input tax credit on the commission's GST. The consensus among respondents was that GST applies only to value addition by the agent, not the total transaction amount, thus negating any double taxation concerns.