Reverse Charge on Overseas Hotel Booking

[JIGAR SHAH]

Our client is a tour operator managing overseas tours like Dubai, USA, etc. For organising tour, they are making payment to overseas suppliers on behalf of their customers. Will Reverse charge applicable on payment made to overseas suppliers for hotel booking, etc?

AI Summary

Tour Operator Questions GST on Overseas Hotel Payments; Conflicting Views on RCM Liability Under IGST Act Section 13(b) A tour operator managing overseas tours inquires about the applicability of reverse charge mechanism (RCM) on payments made to overseas suppliers for hotel bookings. One response indicates that GST is not applicable as the place of supply for hotel services is outside India, according to Section 13(b) of the IGST Act, 2017. Another opinion suggests that the tour operator is liable to pay GST under RCM, as they are importing services. Further references and ongoing legal matters related to outbound tourism and service tax are mentioned, highlighting differing interpretations and ongoing legal proceedings.