GST on Tour Operators

[SaiKrishna Bapathu]

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.

AI Summary

Tour operator GST treatment allows principal and agent supplies with differing tax treatment and restricted input tax credit.
Tour operator supplies can be rendered both as principal and as agent under the same GSTIN with different tax treatments; packaged tour concessional treatment requires not availing input tax credit on inputs used for that packaged service (except input services from another tour operator) and issuance of bills showing gross inclusive charges for accommodation and transport. Arranging or reserving accommodation is classifiable as accommodation reservation services and is taxable and eligible for input tax credit as per statutory rules.