GST on Travel agent

[SHARAD ANADA]

Respected Sir

Greetings

I have few queries on travel agents/ tour operator services. PL give your expert opinion.

1) Travel agent booked ( blocked) 100 air tickets for rs 5000 per tickets from IATA agent. IATA agent will pay commission if RS 200 per tickets with 18% GST. He in turns slaes air tickets with his markup of RS 500 per ticket. He raise of bill of 5500/- on his customer. On which amt GST is applicable? Is it applicable on 5500 or only on 500/-.

2) some times it happens that out of 100 tickets he is able to sale only 85 tickets and for balance tickets he will pay cancellation charges and book cancellation charges as expenditure in his books of account.As he blocked 100 tickets can it be said that he is selling space and not tickets? If yes then on which amt and at which rate GST is applicable?

3) Travel agent of Gujarat books only hotel for his customer in Gujarat from a Bombay based booking agent of hotel Taj. Can Bombay based travel agent raise 18% IGST bill to Gujarat Travel agent? Or he has to raise csgt and Maharashtra sgst bill? Can Gujarat based travel agent claim ITC on bill raised of 18% igst raised by Bombay based booking agent. Or booking of hotel accommodation will be considered as tour operator services and GST rate is 5% without ITC.

4) Gujarat based travel agent books Dubai tour package from Dubai based travel agent. Can it be considered as import of service and Gujarat based travel agent have to pay GST on rcm basis?

AI Summary

GST valuation for travel agents: ticket booking value fixed by rule; cross border bookings treated as import under reverse charge.
Valuation of air-ticket booking services by travel agents is governed by Rule 32(3) of the CGST Rules, 2017, which deems the value of such services to be a fixed percentage of the basic fare (the portion of air fare on which commission is normally paid); this valuation applies regardless of agent markup and the pure agent provision under Rule 33 cannot be used to alter it. Inter state bookings are treated as inter state supplies, and services procured from abroad are import of services subject to tax under the reverse charge mechanism as per the IGST provision and CBIC guidance.