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

Pure agent reimbursement not taxable when conditions met; handling charges remain taxable and must be shown in returns.
Reimbursements that meet the pure agent criteria are not subject to GST and need not be included in taxable value in returns, while the tour operator's handling or commission charges are taxable and should be reported in GSTR 1 as taxable value with GST. Vendor invoices may be in the customer's name to support pure-agent treatment, but the contractual arrangement and relevant valuation provisions must be examined.