How Must GST Return To Be Filed By 3rd Party Managing Hotel Online

[Ashutosh Tiwari]

I am registered as Tour Operator and Managing Online bookings and also collecting payments from Online Agents on-behalf of hotel. Now hotel has e.g given me a Nett Payable amount of say ₹ 5000 Per Room Per Night Inclusive of GST (12%) for booking a room for them , so when I upload rates on Online portal with some markup of Suppose 1000 and when a guest books a room , he is paying ₹ 6000 + 12% GST = ₹ 6720 for his room for 1 Night. Now the Online agency is charging 10% commission on the base rate of 6000 which comes to ₹ 600 and 18% (IGST/CGST/SGST on ₹ 600) which comes to final amount of ₹ 708 so they pay us a Nett Rate of ₹ 6720 - 708 = ₹ 6012. Now post paying agreed rate of ₹ 5000 to the hotel , we are left with an amount of ₹ 1012 , so kindly advise how much GST we need to file for ₹ 1012 and on whose name i.e. The Online Portal or The Hotel whom we are paying the final amount.

[SIVARAMA KUMAR]

Dear sir,

Since your supplies for the customer is with a value addition you need to bill the customer for 6000+12% and not the online agency. In turn the hotel needs to raise a invoice on you for 5000+12% on which you can claim the input credit if you are an eligible dealer. ( since the supply is location based). further you are eligible to claim the gst on commission raised by the online portal.

AI Summary

Value-added supply tax: operator must charge GST on the marked-up room price and claim input credit on hotel invoices. The operator, having made a value-added supply by marking up the hotel rate, must issue a taxable invoice to the guest for the marked-up price inclusive of GST. The hotel should invoice the operator for the nett accommodation charge inclusive of GST, allowing the operator to claim input tax credit if eligible. GST on the online portal's commission is a separate taxable supply invoiced to the operator, and the operator may claim input tax credit on that GST subject to eligibility.