What are the goods and service tax rates on travel agents and tour operating businesses

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Hi,
Goods and service tax is an indirect tax that is levied on the supply of goods and services of different kinds. The services provided by a travel agent or travel agency are also under the GST ambit. Here, we talk about the applicability and rate of GST on travel agents and tour operator services. A travel agent is a person or entity that offers services related to planning, scheduling (booking) and managing trips/tours to their customers. The services provided by a travel company may include booking air/rail accommodation, cab hire, accommodation, sightseeing, etc. A tour operator, agent or planner provides services on behalf of Airline companies, hotels, taxi operators, and others and get a commission/fee for the same. GST is charged on the commission amount.
Remote Office Space/Virtual Office Space

GST - On Different Income Sources for a Travel Agent/Company

A travel agency/agent may earn his/her commission from two major sources: the actual service provider (airlines, hotel, etc.), and the customer, and therefore, will produce two different invoices, as follows:

GST - On Ticket Booking Services by Agents

18% GST will be levied on the commission income earned by air travel agents from airlines as well as on service charges and other charges collected from the passengers. ITC is available on GST paid on commission/ service charge by an air travel agent. Commission/incentive paid by the airline company. In the case of Domestic ticket – 5% of the basic fairness. In the case of the International ticket – 10% of the basic fairness. GST on travel agents commission is charged at the rate of 18%. The type of GST (CGST/IGST/SGST)to be imposed on the commission income of a travel agent depends on the location of supply. Customer located in India & registered under GST: location of the customer. Customer located in India, not registered under GST, but address available: location of the customer. Customer address not available: location of the agent

GST - On the Sale of Tour Packages

There is 5% GST on tour operator services or company, without the benefit of ITC. 5% GST will be paid on the gross commission/fee charged from the customer. From the GST perspective, the tour packages can be divided into the following two categories.
Inbound Tour:- Tour of India for foreigner travelers. If the inbound tour fee is charged on a Principal basis, GST shall be charged at the rate of 5% without ITC. If the inbound tour fee is charged on Commission basis, GST shall be charged at the rate of 18% with ITC. 
Outbound tour:- Tour outside India for an Indian/foreigner. For outbound tour packages being offered to a person based in India, the location of supply will be the location of the service receiver. For the outbound tour package offered to a foreigner for visiting another foreign country, there is no GST charged on the commission received in convertible foreign currency.

GST - On Travel Related Services like Visa, Passport, etc. by an Agent or Company

GST is not charged on any govt fees or consular charges paid for the particular services on behalf of the customer. GST @18% will be levied on the Service Charge paid on travel-related services like Visa, Passport, etc. ITC on GST paid can be claimed if the service is outsourced from another agent.

GST - On Booking of Hotel/Cruise by Agent

In the case of a domestic hotel, the location of the hotel shall be the place of supply. And in the case of international hotel booking, the place of supply shall be the location of the service (booking) provider (agent/company). For hotel booking services, GST will also be charged on the commission received from passengers.

GST - On Commission of Rail Travel Agents

18% GST is levied on the service charge (commission) collected by a rail travel agent from the customer. No commission is paid by the railways to such agents, and therefore no GST is levied in this case.

GST - On Rent-a-Cab Service

5% GST will be paid by a cab operator on the service charge collected from a customer on renting a motor cab, including the cost of fuel. No ITC is available on the GST paid. For all other renting services, not covered above, GST will be charged @18% with ITC availability.
Remote office space/Virtual Office space for travel agents to make it easy for them to take GST Registration all over India /PAN India.

Note:- Remote workspace/Virtual office space is always given at a physical office space. For example co-working space. The cost of Remote workspace/Virtual office space starts at minimum Rs. 1000/ per month. 

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