Скачать или смотреть Part 3: GST on Tour Operator

The Goods and Services Tax (GST) on tour operators in India is structured with different rates depending on whether the tour operator claims Input Tax Credit (ITC). Here's a detailed overview:
GST Rates for Tour Operators:
5% GST without ITC: If a tour operator chooses not to claim ITC on their input services (like rent, professional fees, telephone, etc.), they can charge GST at a rate of 5% on the total package cost.
18% GST with ITC: If the tour operator opts to claim ITC, the applicable GST rate is 18% on the total tour package cost. This allows them to offset the GST paid on their inputs against their output tax liability.
Key Aspects:
Definition of Tour Operator: A tour operator is any person engaged in the business of planning, scheduling, organizing, or arranging tours which may include accommodation, sightseeing, and transportation by any mode.
Services to Foreign Tourists for Tours Outside India: Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India are subject to Nil GST.
Sale of Tour Packages (SAC 998552): The GST rate is 5% without ITC or can vary from 2% to 18% with ITC for hotel/cruise bookings included in the package.
Acting as a Pure Agent: If a tour operator acts as a pure agent (merely facilitating services and claiming reimbursement), they charge 18% GST on their service fee. The reimbursement of expenses is not included in the taxable value.
Commission-Based Services: If the tour operator works on a commission basis (e.g., for booking hotels or transport), the GST rate on the commission earned is 18% with ITC.
Place of Supply: The place of supply rules are crucial for determining the applicability of GST and the ability to claim ITC. Generally, for tour operator services, the place of supply is where the services are performed.
Invoicing: Tour operators must issue GST-compliant invoices to their customers. If acting as a pure agent, the invoice should separately disclose the service charges and the reimbursed amounts.
Threshold for GST Registration: Tour operators are required to register for GST if their aggregate turnover in a financial year exceeds ₹20 lakhs (₹10 lakhs for certain special category states).
Specific Services and their GST Rates:
| Service Description | SAC Code | GST Rate | ITC Availability |
|---|---|---|---|
| Sale of Tour Packages (with accommodation & transport) | 998552 | 5% (without ITC) | No |
| Air Ticket Booking Services by Agents | 998551 | 18% | Yes |
| Hotel/Cruise Booking by Agents | 998552 | 2%-18% (with ITC) or 5% (without ITC) | Yes/No |
| Visa/Passport Services | 998555 | 18% | Yes |
| Rent-a-Cab Service (fuel cost included) | 9967 | 5% (without ITC) or 12% (with ITC) | No/Yes |
| Rent-a-Cab Service (fuel cost not included) | 9967 | 18% | Yes |
| Rail Travel Agent Commission | 9967 | 18% | Yes |
| Service Charges (Visa, Passport, etc.) | 998555 | 18% | Yes |
| Other Renting Services | 998559 | 18% | Yes |
| Services to foreign tourists for tours wholly outside India | 9985 | Nil | Not Applicable |
Exemption for Tours Partly Outside India:
For tour packages offered to foreign tourists that include destinations both within and outside India (e.g., India and Nepal), a partial GST exemption may be available. The exemption is limited to the lower of:
The proportion of the tour days spent outside India to the total tour days.
50% of the total tour cost.
Tour operators need to maintain proper documentation, including passport copies, visas, itineraries, and invoices, to claim this exemption.
The GST framework allows tour operators to choose between a lower tax rate without ITC or a higher rate with the benefit of ITC, depending on their business model and the nature of their expenses.
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