GST on Travel arrangement and tour operator services

By | December 27, 2017
(Last Updated On: December 27, 2017)

GST on Travel arrangement and tour operator services

Analysis of GST on Travel arrangement and tour operator services in India

Is there any GST on Travel arrangement and tour operator services ?

Yes , Travel arrangement, tour operator  services fall under following groups

Group 99855  : Travel arrangement, tour operator and related service

  998551 : Reservation services for transportation

 998552  :Reservation services for accommodation, cruises and package tours

 998553 : Reservation services for convention centres, congress centres and exhibition halls

 998554 :Reservation services for event tickets, cinema halls, entertainment and recreational services and other reservation services

 998555 : Tour operator services

 998556 :Tourist guide services

 998557 :Tourism promotion and visitor information services

 998558 :Other travel arrangement and related services nowhere else classified

[ Refer Annexure of Notification No. 11/2017-Central Tax (Rate) and No. 8/2017-Inegrated Tax (Rate) both dated 28-6-2017, effective from 1-7-2017 ]

What is the GST rates on Travel arrangement and tour operator services ?

CGST Rate is 2.5% and SGST rate is 2.5% and IGST rate is 5% for following

(i) Supply of tour operators services.

Explanation. – tour operator” means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours.

Note

1. Input Tax Credit on Charged on goods and services used in supplying the service has not been taken. 

Reversal of  Input Tax Credit :- 

Explanation ( iv) to Notification :-

Wherever a rate has been prescribed in this notification subject to the condition that credit of input tax charged on goods or services used in supplying the service has not been taken, it shall mean that,—

(a) credit of input tax charged on goods or services used exclusively in supplying such service has not been taken; and

(b) credit of input tax charged on goods or services used partly for supplying such service and partly for effecting other supplies eligible for input tax credits, is reversed as if supply of such service is an exempt supply and attracts provisions of sub-section (2) of section 17 of the Central Goods and Services Tax Act, 2017 and the rules made thereunder.

3.  The bill issued for supply of this service indicates that it is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for such a tour including the charges of accommodation and transportation required for such a tour.

CGST Rate is 9% and SGST rate is 9% and IGST rate is 18% for following

(ii) Support services other than (i) above

[ An Entry No 23 of  Notification No. 11/2017-Central Tax (Rate) and No. 8/2017-Inegrated Tax (Rate) both dated 28-6-2017, effective from 1-7-2017 ]

Is there any Exemption from GST to tour operator services ?

There is exemption from GST to the following service

Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India.

[ An Entry No 54 of Notification No. 9/2017-Inegrated Tax (Rate) dated 28-6-2017, effective from 1-7-2017 : Refer Link in this video description]

Note : There is no corresponding exemption in CGST as only IGST can apply to this transaction.

Is there any Exemption from GST to religious pilgrimage?

There is exemption from GST to the following service

Services by a specified organisation in respect of a religious pilgrimage facilitated by the Ministry of External Affairs, the Government of India, under bilateral arrangement.

specified organisation” shall mean,—

(i) Kumaon Mandal Vikas Nigam Limited, a Government of Uttarakhand Undertaking; or

(ii) ‘Committee’ or ‘State Committee’ as defined in section 2 of the Haj Committee Act, 2002 (35 of 2002); [ Para 2(zze)]

[ An Entry No 60  of  Notification No. 11/2017-Central Tax (Rate) and Entry No 63  of Notification No. 9/2017-Inegrated Tax (Rate) dated 28-6-2017, effective from 1-7-2017 ]

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