Need Some Help for Travel Agent

[Mohit B]

I'm an Ahmedabad based travel agent.

My customers want to go to Kerala and for that, I asked for the Kerala package to the local tour operator.

He gave me the invoice with 5% of GST. (Non-commissionable package)

Now I add my margin and need to send the invoice to the customer.

What is the correct step in this scenario?

1) Shall I charge the 5% GST to the customer? (Invoice with GST from Vendor + My Margin + 5% GST)

2) Invoice from Vendor with GST + My Margin + 18% GST of my margin

3) 5% GST with input tax credit(Invoice from Vendor with GST + My Margin)

Or any other option??

AI Summary

Travel Agent Seeks Advice on GST for Kerala Tour Package; Guidance on Invoicing and Input Tax Credit Provided A travel agent from Ahmedabad seeks guidance on invoicing for a Kerala tour package. The local tour operator provided a package with 5% GST. The agent is unsure whether to charge 5% GST on the total invoice, 18% GST on their margin, or use input tax credit options. A respondent advises that since the place of supply is Kerala, the tour operator should invoice the guests directly. The agent should arrange with the Kerala operator to charge guests including their margin and issue a commission invoice with 18% GST, allowing the operator to claim input tax credit.