Place of Supply for Tour Operator Services

[gururaj Bhat]

Dear Sir,

"ABC" is registered tour operator in Bangalore. Mr. A is a traveler or service recipient residing in Bangalore. Mr. A is approaches "ABC" for a package tour to Rajasthan. "ABC" outsources this package to registered dealer in Rajasthan & receives IGST bill.

Query 1: The package includes transport, accommodation & sight seeing. Should "ABC" raise a invoice with CGST/SGST based on service recipient location or raise IGST as the the place of supply is in Rajasthan.
Query 2: The package includes accommodation & sight seeing only. Should "ABC" raise a invoice with CGST/SGST based on service recipient location or raise IGST as the the place of supply is in Rajasthan.

Later Mr. A residing in Bangalore decides to take package tour to Dubai should ABC raise a invoice with CGST/SGST or IGST.

Please advice to how to arrive place of supply whether it is based on traveler address or actual place of service performed.

AI Summary

Place of supply rules for tour operator services determine IGST or state GST treatment based on supplier location and principal status.
Place of supply rules determine whether tour package supplies attract IGST or state GST. When a principal tour operator outsources package components to suppliers located in another state who act for and on behalf of the principal, the supply is treated as inter state and IGST applies. The principal/agent distinction, invoice/payment flows, identity of actual service provider and recipient, and whether services are enjoyed outside India are the operative indicators for applying the IGST place of supply provisions.