Invoicing method for tour operator services under GST

[gururaj Bhat]

Dear Sir,

A registered dealer is engaged in tour operating services. For tour package services he charges 5% on whole amount. For individual services like air ticket, visa, passport services he raises a single tax invoice which includes reimbursement of cost & his handling charges. GST will be charged on handling charges only.

1. Is the above method right way of raising the invoices for reimbursement.

2. In GSTR-1 should we need to show the reimbursement value + taxable value + GST or should we need to show only taxable value + GST.

3. Reimbursement amount will be transferred to registered dealer account from the customer & the dealer transfers it to vendors. The vendor issues a invoice in the name of registered dealer with customer details or should we get the invoice in the name of customer itself.

Pls advice.

Thank you.

AI Summary

Tour Operator Seeks Guidance on GST Invoicing for Handling Charges and Reimbursement; Pure Agent Status Clarified A registered dealer providing tour operator services inquires about the correct invoicing method under GST. The dealer charges 5% on tour packages and includes handling charges in invoices for individual services like air tickets and visas, with GST applied only to handling charges. The queries focus on whether to show reimbursement amounts in GSTR-1, how to handle vendor invoicing, and if invoices should be in the customer's name to benefit from pure agent status. Responses suggest using customer-named invoices for pure agent benefits and clarify that GST is not applicable to reimbursed expenses, only to handling charges.