Hi,
I work in a travel services company, we are basically Tour operators. I have a doubt about the GST calculations. We are not IATA agents, so when we book flight ticket for our customers we get commission from the airline or from our supplier. How do we have to pay GST on that commission? will it come under RCM? how should we show it in our books? Please help. Thanks in advance.
No RCM on commission . Just raise the Tax Invoice for the commsion reced.
Or
Alternative Merhod :
As per Rule 32 CGST
As an alternate to GST payment in the above manner, rule 32 (3) of CGST rules, 2017 permits an air travel agent to discharge GST at fixed percentage of basic fare on which commission is normally paid by the airlines to the agent. In such a case, the effective value and the effective rate of GST is tabulated below:-
Type of Booking : Dmestic
Basic Fare Assume : 100000, Effective Value : 5000 (5% of Basic Fare, GST Payable :900/- (18% of 5000/-)
In case of Internation Effective rate is 10% of Basic Fare
In case an air travel agent opts to pay GST on basic fare module, he is not required to pay GST separately on commission, if any, received from the airlines as well as service charges / booking charges / management charges from the customer / passenger.
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