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.

AI Summary

Agent reservation services attract standard GST with input tax credit available to the recipient when billed as service fee.
Booking airline tickets by travel agents is a supply of reservation/facilitation services under SAC 998551 taxable at the standard GST rate; tax applies to the agent's service fee or, where applicable, to a deemed portion of the fare under valuation rules. In B2B cases the recipient may claim input tax credit on the agent's GST subject to standard ITC conditions, and market practice is separate invoicing by airline and agent to preserve clear valuation and credit flow.