Travel Agent Charges 5 GST without ITC. Can he raise invoice18 on Service Fee for Flight Tick
This query is : Resolved
07 April 2025
Travel Agent Charges 5 % GST without ITC for tour packages. Can he raise invoice @ 18% on Service Fee for Flight Ticket bookings ??
12 April 2025
Tour operators providing composite tour packages (including accommodation, transport, etc.) are subject to 5% GST without Input Tax Credit (ITC) under Notification No. 12/2017-CT (Rate).
If the travel agent is charging a separate service fee for flight bookings (not part of a tour package), then:
The service fee is classified under SAC 9985 (support services in transport).
The applicable GST rate is 18% (with ITC eligibility).
If the flight booking is part of the tour package, the entire package falls under 5% GST (without ITC).
If billed separately (as a service fee), then 18% GST applies only on the service fee, not the flight ticket value (since airline tickets are exempt from GST).
If the travel agent is charging a separate service fee for flight bookings (not part of a tour package), then:
The service fee is classified under SAC 9985 (support services in transport).
The applicable GST rate is 18% (with ITC eligibility).
If the flight booking is part of the tour package, the entire package falls under 5% GST (without ITC).
If billed separately (as a service fee), then 18% GST applies only on the service fee, not the flight ticket value (since airline tickets are exempt from GST).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registration in the state of maharashtra
- Service Provider GST
- Receipts in bank account by way of transfer from various persons via UPI
- RCM is applicable or not (labour Charges , loading and uloading charges)
- 26QB last installment Query
- Causal labour
- TDS u/s 194Q in case of Section 8 company registered u/s 12A and 80G
- 26B Form submission
- TDS on amenities like electriity / transformer
- Input tax credit on officw kitchen furniture fixed to wall and drawers
- Regarding required stamp
- Alcohol (article 366(12A))
- Regarding demerger of firms
- Utilization of Electronic Cash Ledger in GST
- Investment discussion
- Domain Purchase-15CA & 15 CB
- TDS on advance amount paid to builder
- Query regarding filling form 112 during articleship
- Input Credit available in Credit ledger
- If the GSTR1 filed after due date and the invoices mentioned GSTR1-A, will we be able to claim ITC o
Trending Online Classes
-
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
Industry Expert17 May 2025
CAclubindia
