Dear Sir,
A company is into tour operating services. They are providing services on both principal & agent module
1. On principal module charging GST @ 5% & not claiming any ITC
2. On Agent module they are charging commission at 18% & not claiming any ITC presently
Please suggest whether:
1. Can we do both 5% & 18% module in same GSTIN?
2. As we are providing 18% also, whether is there any provision for claiming ITC on inward services? or can we claim proportionately as per turnover?
Please suggest.
Tour Operator Can Use Principal and Agent Models Under One GSTIN; ITC Eligibility Clarified by Advance Ruling A company providing tour operating services is using both a principal and agent model, charging GST at 5% and 18% respectively, without claiming Input Tax Credit (ITC). They inquired if both models can operate under the same GSTIN and if ITC can be claimed proportionately. A respondent clarified that both models can coexist under the same GSTIN, and detailed the conditions under which services are taxable at 5% and 18%, referencing specific notifications and classifications. The respondent also confirmed eligibility for ITC under certain conditions, citing a relevant case from the Authority for Advance Ruling in West Bengal. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
