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GST on Air Travel Agent or Tour Operator and Related Services
Relevant rules and GST rates applicable in case of Air Travel Agent or Tour Operator and Related Services
RULES 32 of the Central Goods and Service Tax Rules, 2017 provides Determination of value in respect of certain supplies.
As per sub-rule 3 of rule 32 –
The value of supply of services in relation to booking of tickets for travel by air provided by an air travel agent, shall be deemed to be an amount calculated at the rate of 5% of the basic fare in the case of domestic bookings, and at the rate of 10% of the basic fare in the case of international bookings of passage for travel by air.
Explanation – For the purposes of this sub-rule, the expression “basic fare” means that part of the air fare on which commission is normally paid to the air travel agent by the airline.
List of Travel related services along with SAC codes and rates
SAC Code DESCRIPTION OF SERVICES GST RATE
9964 Transport of passengers by air in economy class 5%
9964 Transport of passengers by air in other than economy class 12%
9964 Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport. 5%
996423 Taxi services including radio taxi & other similar services 18%
996425 Domestic / international scheduled air transport services of passengers 18%
996426 Domestic / international non-scheduled air transport services of passengers 18%
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