Gst on hotel booking by travel agent

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If a hotel is booked by travel agent then rate of GST if 5% (without ITC)

Suppose a travel agent books a hotel for Rs 10000. After that he adds his margin of Rs 2000. Then on what amount GST should be levied - 12000 or 2000 ? 

Replies (9)
so far as hotel booking is considered the rate is determined by the slabs
provided that upto 1000/= per room per day is exempted in gst
As per section 15 of cgst act Gst should be levied on 12000.
GST is to be Charge on 12000/-

Suppose a travel agent books hotel online for Rs. 2000(including 12% GST) then he adds up his mark-up of rs 200(generally profit margin is very low due to competition) and sell to his client at Rs 2200. He is not eligible to take ITC on input services. So if he charges 5% GST on 2200 then total cost of end consumer will increase drastically and it will not be feasible due to tight competition. 

In air travel booking travel agent charge GST @ 18% on profit margin(processing fee). So I think same will apply to hotel booking also. 

Suppose a travel agent books hotel online for Rs. 2000(including 12% GST) then he adds up his mark-up of rs 200(generally profit margin is very low due to competition) and sell to his client at Rs 2200. He is not eligible to take ITC on input services. So if he charges 5% GST on 2200 then total cost of end consumer will increase drastically and it will not be feasible due to tight competition.  In air travel booking travel agent charge GST @ 18% on profit margin(processing fee). So I think same will apply to hotel booking also.
 


 

Suppose a travel agent books hotel online for Rs. 2000(including 12% GST) then he adds up his mark-up of rs 200(generally profit margin is very low due to competition) and sell to his client at Rs 2200. He is not eligible to take ITC on input services. So if he charges 5% GST on 2200 then total cost of end consumer will increase drastically and it will not be feasible due to tight competition.  In air travel booking travel agent charge GST @ 18% on profit margin(processing fee). So I think same will apply to hotel booking also.

 

Need clarity on the above

Need clarity on the above as the query is a valid one which is faced in practical scenario.will it be possible to pay GST only on the profit amount and if yes then in which section as per GST will it abide.

 

Thanks 


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