GST on Hotel Booking Agents

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S.Jegadeesan (Querist)
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21 December 2021 Sir,
I would like to clarify some doubts regarding GST Input on services provided by the Hotel Booking Agents & Travel Agents.
Why GST Department denied in case POS and supplier state are same but recipient state is different regarding providing the Hotel Booking Services?

For Ex.M/s EST Trip Pvt ltd having office at Chennai & providing the booking services to various clients across India.
When booking the hotel/resort (situated in Pondichery) for its clients having office at Chennai the ITC has been denied since the POS and supplier state are same but recipient state is different. The Hotel raised Invoice with CGST & SGST because supply within its territory .Whether is it correct or it should raise the Invoice with IGST since the recipient of service in Other state even though supply is within the state?

Since to hide the profit of booking agent normally the booking agent, get the bills in their name and raise the bill along with some profit on its clients while arranging hotel/resorts facilities . But in this case the ITC has been denied due to the POS and supplier state are same but recipient state is different. So you are requested to kindly clarify the above .

B Sathyanarayanan

B Sathyanarayanan (Expert)
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21 December 2021 the tour operator bills in own state ,though pos and supplier state is same ,since the receipt ant is in Puducherry , he is liable for local tax(CGST+SGST) ,and is not required to take IGST , since you will not able to claim IGST input under blocked credit and hotel and tours are ineligible ITC and even you take credit ,it will be disallowed . so better you do not go for Input .

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S.Jegadeesan

S.Jegadeesan (Querist)
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21 December 2021 Then how can the Booking agent will pay the GST . While booking they have paid GST so without taking ITC of the same how can they will pay for entire value
For Ex: Booking Agent(in Chennai)got the Booking for Rs.10000 for a booking in a resort in Pondicherry and the same has been sold to the company who has office at Chennai(Booking Agent's client) for Rs.12000/- .In case ITC disallowed then the Booking Agent has to pay for Rs.12000 once again .because Booking agent will raise the Invoice with Rs.12000/- not only for margin part .

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CA Akshay Hiregange

CA Akshay Hiregange (Expert)
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28 December 2021 He will only pass on the invoice value and not charge tax again. Agent cannot provide Hotel/accommodation services. His GST will be on agency services only.

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