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GST Taxability travel agent

25 June 2017

A travel agent booking bus ticket in different buses. after deducting his commission forwarding remaining amount to bus owner. how his turnover will be calculated and is GST required and is input credit available?

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14 Replies

Gagan Singla (564 Points)
Replied 25 June 2017

TRAVEL AGENT IS PROVIDING TAXABLE SERVICE OF BOOKING TICKETS FOR TOURING BY TRAVELLERS ON BEHALF OF COMPANY. COMPANY IS PAYING HIS REMUNERATION AS COMMISSION FOR SERVICES RENDERED. IF THE COMMISSION EXCEEDS 10/20 LAKHS THEN COMMISSION AGENT HAS TO TAKE REGISTRATION IN THE STATE WHERE HE MAINTAINS OFFICE OR FROM WHERE HE PROVIDES SERVICES OF BOOKING TICKETS. IF HE GET REGISTRATION THEN HE WILL CHARGE GST FROM BUS OPERATOR AND PAY TO GOVT. OF WHICH BUS OPERATOR WILL GET ITC OF GST ON COMMISSION PAID TO AGENT. IF AGENT DOESNOT GET REGISTRATION THEN BUS OPERATOR WILL APPLY REVERSE CHARGE ON COMMISSION AND TAX LIABILITY FALLS ON BUS OPERATOR.
THANKS
GAGAN SINGLA
Tax Advisor

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Gagan Singla (564 Points)
Replied 25 June 2017

ALSO TDS ON COMMISSION AS PET INCOME TAX LAWS AS PER CURRENT REGIME

DIPESH JAIN (78 Points)
Replied 26 June 2017

is Travel agent required to charge GST in ticket he is booking for customers?

Gagan Singla (564 Points)
Replied 26 June 2017

no not gst on consumer ticket as ticket is sold on behalf of bus operator. gst on ticket if applicable will be chgd by bus operator

DIPESH JAIN (78 Points)
Replied 03 July 2017

What if travel agent is in gujarat and bus operator is in rajasthan?

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DIPESH JAIN (78 Points)
Replied 03 July 2017

And what bus operator will do in GST?

ketan gandhi (3 Points)
Replied 03 July 2017

r u sure,if commission exceed more then 20 lkhs on bus ticket booking commission then only travels agnent has to enroll

gstn otherwise not required to pay gst???

Rahul Mehta (6 Points)
Replied 05 July 2017

Agents are required to do GST Registration compulsorily..

DIPESH JAIN (78 Points)
Replied 14 July 2017

is it a stage carriage? what it mean?

AHMED AH (Propietor) (27 Points)
Replied 22 July 2017

Now as stated , that the travel agent should charge 18% on commission earned or service charge , but if the whole years total commission and service charged earned is below 20 Lakhs and i have also registered GST member , should we still collect the 18% GST or is it ok if we dont charge anything ? please clarify

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AHMED AH (Propietor) (27 Points)
Replied 22 July 2017

Now as stated , that the travel agent should charge 18% on commission earned or service charge , but if the whole years total commission and service charged earned is below 20 Lakhs , should we still collect the 18% GST or is it ok if we dont charge anything ? please clarify

ABHAY JAIN (PROP) (29 Points)
Replied 27 July 2017

As per Section 24 of CGST ACT 2017, the following categories of persons shall be required to be registered compulsorily irrespective of the threshold limit of Rs 20 Lacs:

• Persons making any inter-State taxable supply • Persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise
All travel agents will fall under the above exceptions and thus would require to get themselves registered under GST irrespective of the threshold limit of Rs. 20 lacs.