SAC and GST rate for Travel agency issues invoice for airline ticket bookings to their clients but not as pure agent

[Dipika Shetye]

What would be the applicable SAC and gst rate on airline ticket booking invoice raised by travel agent to their clients where the client is eligible to claim ITC of invoice.

If possible, also provide background about what is prevailing market practice.

[Sadanand Bulbule]

SAC 998551

18% GST has to be charged on the Agent Service fee for bookings.

AI Summary

GST rate on travel agent supplies: whether ticketing invoiced as principal supply or taxable commission affects tax treatment. Query concerns the correct Service Accounting Code and GST rate where a travel agency invoices a client for airline ticket bookings without acting as a pure agent, focusing on whether the supply is the agency's principal ticketing service or merely taxable commission, and noting the client's eligibility to claim Input Tax Credit as relevant to invoice characterisation.