tour operator services in gst

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Union Budget 2024
Goods and Services Tax

GST on Tour Operator Services

‘Tour Operator’ shall mean 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. The definition is provided by the Explanation in Heading 9985 of GST Tariff Act, 2017.

For example, Make my Trip, Expedia etc. These companies provide a complete package of tour which includes Boarding & Lodging, Transportation, Local Sightseeing, Guides etc. Now a days, this business has become purely an E-commerce business and all the big companies have their own web portal and mobile app.

Come the new idea of businesses, come more challenges with more complexity and opportunity. With this article an effort is made to descript the Services of Tour Operator under the aegis of Indian GST Laws.

As per Heading 9985 of GST Tariff Act, 2017, The rate of GST would be 5% ( 2.5% CGST+2.5% SGST ) provided following conditions are met,

1. Input tax credit on services availed by the entity will not be available. However, Input Tax Credit on the services taken from other Tour Operator are allowed.

2. The entity shall indicate in its invoice that the amount charged is gross amount and inclusive of charges of accommodation and transportation

Therefore, if an entity offers a package to a customer for let’s say Rs. 1,05,000/- inclusive of everything, then the invoice shall be generated for Rs. 1,05,000/- ( Rs. 5,000/- being CGST & SGST ) and entity has to specifically mention in invoice that amount includes accommodation and transportation etc. No input tax credit on services like hotels, air tickets etc. will be available to the entity. However, Input Tax Credit may be taken on the tour operator services procured from another tour operator.

On the other hand, the entity may charge GST at the rate of 18% ( 9% CGST+9% SGST ) on the total amount. In that case, the entity will be eligible to take all input tax credit like rent, professional fee, lease line, telephone etc. on the services that the entity acquired for providing the underlined services i.e. Tour Operating.

However, most of the input tax credit will not be available to the entity due to the nature and place of supply of those services which are taken by the entity. The main expenditure that entity will occur would be of Boarding & Lodging and Hotel booking. In case of Hotel booking, the place of supply would be the location where the hotel is situated and thus the hotel will charge CGST & SGST on the invoice. If the entity is not registered under GST in the state where the hotel is situated, the entity cannot take the input tax credit on that particular invoice. Same goes with flight tickets. The place of supply in case of air fare, would be the place from where the flight embarks and in case the entity does not have registration under GST in the state from where such flight take-off, the entity cannot take input tax credit of that invoice too.

Let’s understand the situation with an example. Suppose, a customer from Delhi approaches Tour Operator which is situated and registered in Bangalore, Karnataka for a complete package of 5D/6N tour to Kerala. The entity quotes Rs. 1,00,000 ( Excluding GST ) for the tour. The breakup of the charges is as follows,

In this case, entity can opt either to pay 5% GST ( IGST ) on Rs. 1,00,000/- i.e. Rs. 5,000/- and avail no input tax credit or to pay 18% GST ( IGST ) and may avail input tax credit. But the entity is not eligible to take input tax credit on Air fare and Hotel charges as the place of supply, in case of Hotel, would be Kerala and in case of Air fare, it would be in Delhi. However, if the entity get itself registered in Kerala and Delhi, then it is possible for the entity to take input tax credit for these services also but that seems quite unfeasible considering the compliance burden which will be increased for the entity.

Further, in this case the entity must raise an invoice indicating specifically that the amount charged is gross amount and inclusive of charges of accommodation and transportation.

Though, most of the companies do operate as Tour Operator services, the entity may either provide services as an agent and charge commission on its service and take reimbursement in actual for the expenses that entity incurred for providing such services. Generally, small business entity opts for this model as in this model, the entity must pay tax only on the commission that it charges and not whole amount which is not even its revenue.

The entity may also opt to provide the underlined services on commission basis. In that case, the service will be categorized as ‘Intermediary’ and services like Boarding & Lodging etc. will be taken by the entity on behalf of customer. The entity will act as ‘Pure Agent’ and take reimbursement on actual basis from the customer.

As per section 2(13) of IGST Act, 2017 ,

“Intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account”

And as per the Explanation to Rule 33 of CGST Rules, 2017,

“Pure agent” means a person who—

enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both;
neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply;
does not use for his own interest such goods or services so procured; and
receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account.”

In this case, the entity has to enter into an agreement with the customer to act as his pure agent and authorize itself to incur the expenses for services like Hotel, Taxi etc. on behalf of customer. The entity, in this case, will charge its commission ( whatever agreed ) from the customer and will take reimbursement of the expenses on actual basis which it incurred on behalf of customer.

Let’s understand this with our previous example. In that case, if the entity enters into an agreement with the customer to act as pure agent, then the entity will charge GST at the rate of 18% on Rs. 10,000/- only i.e. Rs. 1,800/- and will take reimbursement of Rs. 90,000/- as actual expense incurred on behalf of the customer.

However, in this model, there are certain conditions which needs to be complied with. As per Rule 33 of CGST Rules, 2017,

“Notwithstanding anything contained in the provisions of this Chapter, the expenditure or costs incurred by a supplier as a pure agent of the recipient of supply shall be excluded from the value of supply, if all the following conditions are satisfied, namely, —

the supplier acts as a pure agent of the recipient of the supply, when he makes the payment to the third party on authorization by such recipient;
the payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pure agent to the recipient of service; and
the supplies procured by the pure agent from the third party as a pure agent of the recipient of supply are in addition to the services he supplies on his own account”

Taking the previous example further, the entity has to raise an invoice for Rs. 10,000/- and add 18% GST thereupon and will indicate separately in the invoice for the payment made by the entity as pure agent on behalf of the customer.

A graphical flow chart will explain both the options in much better way,

In case the entity takes services of any other Tour Operator, let’s say for planning the itinerary for the customers for particular packages, the entity can take input tax credit regardless of his choice to act as Tour operator or Agent.

For better understanding, let’s continue with the example cited above. In that case, let’s say 25% is the fixed charges for the other Tour Operator which will come out to be Rs. 2,500/- ( on Rs. 10,000/- ). Now, the other Tour Operator shall charge GST at the rate of 5% ( i.e. Rs. 125/- ). In this case, the entity can take input tax credit of Rs. 125/- even if the entity has opted to pay tax at the rate of 5% on the total amount.

Let’s understand this with graphical depiction,

The GST shall be charged and paid at the time of payment or invoice whichever is earlier. Therefore, for the purpose of GST, the entity shall recognize its revenue on the payment basis.

However, if the entity opts to act as ‘Pure Agent’ the GST shall be charged when the final invoice is raised or the receipts of the commission whichever is earlier.

About the Author

Author is Amit Jindal, ACA working as Manager Taxation in Neeraj Bhagat & Co. Chartered Accountants, a Chartered Accountancy firm helping foreign companies in setting up business in India and complying with various tax laws applicable to foreign companies while establishing their business in India.

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95 Comments

Sir, I am working as an inbound tour operator. I wish to opt 5% of total amount without claiming ITC. But in my ledger ITC always crediting in and the tax amount is adjusting from this ITC credited and no option for challan creation for payment of tax @5%. Is there any method not to credit ITC in my ledgers?

As per article ,Tour operator (T1) can avail ITC on another tour operator T2.mean if tour operator T1 outsource the tour package to another tour operator,T2 then as per the article T1 can take ITC pass on by T2 if billed @5%. Can you please suggest me the notification/section reference as we have same matter in appeal and GST department disallowing the ITC taken on service of tour operator T2

Can a proprietorship Firm (Tour and Travels) charge gst under RCM to a LLP firm and other Proprietor.

Please Reply…

GST is getting complicated to understand,

This might be answered earlier however, let us take an example

We are purchasing a consolidated package from a B2B tour provider let say Rs. 10,500 which reflects as all taxes included. We are using ZOHO accounting to start with.

Under Purchase -> Vendor – Bill is rasied for Rs.10,000 with 5% GST as Inclusive Tax (10,000 + 5 % GST (Rs.500)) Under Sales -> Customer – Invoice , we have raised for Rs.10,500 +1000 = 11,500 with 5 % GST for Rs.10,500 (Inclusive) and 18% on Rs.1000 (Mark up Commission) Here 5 % GST is applied both on Vendor and Customer as Inclusive Tax.

But when we look at GSTR it reflects as Total Payable of Rs.575 (5%) +180 (18 % )

How is the contra entry for this applied, as if we pay 5 % on total it will be a double GST which is 10 % . What is the method to be followed.

Namaskar, this is Satish here from Rana Holidays, Kolhapur.

I need your kind suggestion regarding GST Calculations in below FIT – done by us…

Tour Sector – Mauritius

Taken from B2B Supplier in India – 2HUB – Pls find below Transactions

So what will be the GST in this???

MAURITIUS PACKAGE

Total Invoice from 2HUB Company in India

533957 + 13581 + 2444 = 549982 /- Rs + we have given TCS 30989/- Rs to them

We charged Client as per below

619776 + 30989 (5% GST) + 30989 ( 5 % TCS ) = 681753 /- Rs

So pls suggest how much GST i need to pay….

We are overseas tour operators. Can we pay 18% GST on gross receipt minus air ticket, foreign currency exp, visa exp etc or 5% on Gross receipt only ??

Dear Sir Please suggest, Please do not ignore my question 1.how to show reimbursement value in gst portal. 2.This is to be mandatory to show or not. 3.Can show this in exempt sale.

hi, i am working as commission agent for tour operator based out of India, we collect payment in INR in our Indian registered company account on the behalf of the company based outside country and we make remittance overseas as bulk for all the bookings payment come to us , will the gst 18% applicable on the service charge part only , please guide ?

We are agents for cruise operators who are based outside India. The cruises start and end outside India. We are paid commission for booking Indian passengers on the cruise.

Should we invoice the cruise only part and charge 18% GST on our commission. Or charge 5% GST on the gross.

How is TCS added to this Invoice? Is TCS 5% of the total of (Cruise only + commission + 18% GST on commission. )

I m tour planner and serve whole tpur package service for the tourists. Can I apply 5% on some bills with No ITC claim and 18% on some bills with ITC claim on same month/returns. Suppose I served 6 tours in a month then Can I generate 4 bills on 5 % and 2 bills on 18% slab?

We are franchise of a reputed online travel agency dealing in online and offline tour operator…we earn commission for every sale from the agency and 5 %GST of the entire sale value is collected by the agency on customers behalf…customer is billed directly by the agency….please guide our GST output as we do not have any ITC and are paid commission as intermediator. Also what’s the scenario if total commission crosses 20lakhs in one fiscal year

Namaskar, We are Working as Tour Operator. We are providing Hotel Booking services to B2C and B2B Client.

On Hotel Booking service: Eg. – We Got Hotel at 2000 and we offered same hotel to our B2B Client at 2500 It that case having following queries: 1. Is SAC code 998555 is correct for it. 2. Is it correct for Invoice ? total Billing Value 2500 and Taxable Value 500 { and 9 % CGST and 9 % SGST on Rs. 500/- }

Request to advice following confusion I am in Mumbai buying a package tour with all transport hotel from a tour operator in Assam cost Rs 45000 he is charging me + 5% GST on 45000. I am charging client 55000 with Rs 10000 margin + 5% GST so question is already the tour operator is paying 5% on 45000 so i have to pay 5% on 10000 only or total 55000 plus 5% ? Or Pay 18% on 10000 margin only? we are registered with both 18% and 5%. As for the same client tour operator is paying 5% on 45000 and i am asking cleint 55000 plus 5% so 10 percent on the same client paid at GST ? confused please help

You can either pay GST @ 18% on Rs. 10,000/- and show Rs. 45,000+5% GST as reimbursement of expenses as actual. In this case, no ITC available

You can pay GST @ 18% and take ITC on GST paid on Rs. 45,000/-

You can pay GST @ 5% on Rs. 55,000/- but ITC will not be available.

You have to explore these three option by analysing which benefits you more.

For more details, you can reach out to us on our website

Dear Mr. Joseph, the basic condition being a tour operator is that you provide the services all inclusive, that is to say you don’t give the bifurcation of the amounts charged, say commission etc. You are just invoicing your customer for the package as a whole. So in your case, you will be invoicing your customer, in your example, for 11,500 (exclusive of GST) without showing the markup amount. Now, on such bill, you will be charging GST @5% which comes out to be 575.

Since, you have also taken the input tour operator services, and ITC of 500 is available, your net cash payable will be 75 only. Hope this makes sense.

Dear sir Please reply of my question My question is For example:- sale Total invoice value. 111800 Reimburseable. 100000 Margin /taxable 10000 GST@18%. 1800

Now here my question is

1 What should be value of total invoice, As above mentioned sale example we have to show total invoice value -111800 Or 11800 in GST R 1 or GST R3B in B2B transaction case. 1 What should be value of total invoice, As above mentioned sale example we have to show total invoice value -111800 Or 11800 in GST R 1 or GST R3B in B2C transaction case. 3.how to show reimburse amount in GST R3B or GST R1

4 .what we have to show reimburse amount in exempt supply or not.

The invoice value will remain 1,11,800.- but the actual ale will be considered as 11,800/- (Rs. 10,000/- your commission/margin and Rs. 1,800 as GST). When you raise the invoice, you will indicate Rs. 1 lakh separately for reimbursement of actual expenses which were incurred on behalf of client. In returns also, the sale value will be 11,800.

Please reply what will be invoice value in gst return.

Dear Sir Can we show exempt sale of reimbursement value. Please reply

What is the HSN code or SAC when we are charging 18% on the commission earned

i charge bookings on per head basis including food. what GST should i charge and what code should i use? can i take ITC?

You can charge 5% GST where ITC will not be available else charge 18% and avail ITC

Booked 2 hotels in HP for client based Mumbai. One hotel is giving gross invoice for which we will raise a commission invoice and other hotel is giving net invoice both billed to us. Can we show Hotel cost + commission charged to client + 18% on commission? If so, do we show gross amount of hotel 1 & net amount of hotel 2?

Please elaborate your query a little more. Whether you will charge commission to hotel in case where hotel is giving gross invoice or to customer and whether both hotel booked for same customer.

Dear Sir, We will charge a commission to the client. Both hotel bookings are for the same client. We will also raise a commission invoice on one hotel that gave us a gross rate; this will be our additional income. We will invoice the client for reimbursement of hotel room bookings total of gross & net hotel invoices and add our commission. The client and tour operator are based in Maharashtra while the hotels are in Chandigarh & HP.

On the commission invoice to hotel, you have to charge IGST at 18% and on invoice to customer you will charge 18% CGST/SGST on the commission only and rest will be shown as reimbursement. Else you can charge 5% on the total invoice to customer but in that case input won’t be allowed. You can contact us through our website for detailed legal opinion.

Thank you Neeraj ji.

We received advance from the customer for tour packages and we give cancelation option also to customers, Kindly let us know we need to book the GST liability at the time advance received or at the time of travel date?. as many tours get canceled before travel date, it is difficult to manage to reversal of GST liabilities.

As per GST Laws, you have to book GST at the time of receiving advance and also have to reverse the same when the customer cancel the booking. You can follow the other practice which almost every tour operator do. When the booking is canceled, don’t pay back the GST amount and correspondingly, don’t reverse the GST. You can tell the customer that this much amount is cancelation charges.

Can we make interstate supply while we are paying 5% gst under this scheme

Yes you can.

Hi, When we raise invoice in tours and travels supplier point of view, please answer whether GST is applicable for TOLL and BATA

In case of hotel booking through online platform like Make My Trip, whether the hotel should issue invoice to the guest (B2C) or to the online service provider (B2B)? Here consideration received by the hotel from the online service provider

Yes, the invoice should be to the customer. Online service provider works as a pure agent.

How to file GSTR 1 and GSTR 3B for Travel Agents. Only for railways and flights.

I have a tour oprater service and as itc process if i make 5% gst bill then i am not eligble for itc..I know than but my main quation will get the ITC for other like . i am spening the mony on facebook ads and they are charging me 18% GST will i get the GST itc for this .. if i purhessed any laptop for office purpers and i take the GST bill form Shop then i ma eligible to claim the GST for laptop

In case you are making 5% GST bill you cannot take ITC of Facebook bill and also not of Laptop bill

Its Possible if i make 18% gst or 5 % GST bill. example : I have 6 sales invoice and I make 3 sales Invoice in 18% GSt & rest 3 for 5% GST for any month not every month will i eligble for ITC for all like. facebook, laptop or other purches etc.

Or Its possbile one month i make 18% GST for claim ITC and 1 month 5% GST bill..

You can do that too.

Yes you can take input proportionately. You can take all the input and then reverse proportionately in the proportion of 18% supply and 5% supply. For detailed assistance on this you can connect with us.

Dear Sir Please advise on following question.

We are tour operator and charge GST@5% from our guests. Can any of the guest claim this GST credit against this invoice ? For example, I sold a package tour including hotel and transportation for Rs. 25000+5% GST. We paid 5% GST to govt. We have issued invoice to guest mentioning package cost Rs.25000 + GST. Now can the guest claim credit against this invoice ? There are different answers received on this platform but not satisfactory. Kindly advise. Naresh

Your customer/guest can take input tax credit of this 5%. But you cannot take any ITC for paying out your GST liability except that ITC which is on the services taken by you from other tour operator. You can write to us on our email id detailing your query, and we will reply accordingly.

applying for new GST registration for Tour operator, but stuck in between. as Tour operator is not mentioned specifically under the Business type/category. please advise what category to be selected and what will be HSN number.

If there is no specific category mentioned, you can select Others. The HSN code is 998555.

I have started a new travel agency, Now As of things will charge 18% on flight bookings and 5% on cabs,hotel,visa. .Now my question is should I charge these GST on my margin (Ie 1000₹+18% was flight ticket and I sold for 1200₹) then my invoice to client should like (1200+18%) or (200+18%) for flights..if it’s (1200+18% then invoice value is 1416₹ which he can claim, oR (200+18% =236₹) which he can claim

Second , I’m getting an invoice from hotel people for 12% but I’m giving to client as 5%.. so it should be on whole amount or only on my margin should give ..

Please advice

Regards, Sheriff

Please advice…

In the case flight ticket booking, you have to charge GST at the rate of 18% on the commission value i.e. in your case you have to charge GST on INR 200. In case of hotel booking, you can charge GST both ways either on whole value or only on the commission. In case you are working on commission basis then GST rate would be 18%. In case you are charging GST on the whole amount, GST would be charged based on the room tariff as below,

INR 7,500 28%

If room tariff is below Rs.1,000 then there would be no GST. If it is between Rs.1,000 -2,499.99 then the rate would be 12%. If it is between Rs.2,500 -7,499.99 then 18% and if it is INR 7,500 or more the rate would be 28%. For more detail on this you can reach out to us on our website

Sir my vichele is in tender under govt hospital for staff duty … i will pay 12 percent gst and my annual income is less then 5 lakh what can i do? I should pay or not plsase tell me

If your annual income is less than 5 lakh then you need not to get registered under GST and if you are not registered then there is no liability of GST on you for the services you provide

Dear Sir can we take input tax credit on Input goods & assets or other support service credit while we obtaining 5 % GST Slab ??

No, you cannot.

Dear Sir Can a travel company work as both method as a tour operators and pay 5% gst on whole amount ,and take ITC in case purchase package from other tour operator. As a travel agent and pay gst 18% only on service charge with itc.

Yes, you can work both ways simultaneously. But in that case you have to maintain separate record

I am own a transport which provide staff travelling to company. In this case I have two client 1 client asking for 18% and 1 client asking for 5% while I have one transport can I gave two different types of GST percentages. Can anyone suggest answer for my question

Yes, you can.

What if I am providing Tour service to Government department. is 5% tax applicable to me. As I am charging 5% tax in B2C and government department is paying RCM and not paying me 5%.

Sir I have made partial advance payment of total tour package but now tour is canceled, now I am asking for refund but tour operator says that we have paid 5% GST so this amount will no be paid. Please suggest & confirm.

You are eligible for GST refund also on the proportionate amount of advance that you have paid. You need to talk with the tour agency and ask them to give you a credit note for this.”

Some a portal charged 5% TDS on commission earned (Not 18% GST on commission).

In case airline ticket breakup is Base fare : 13,319, Other Taxes :578, K3 : 668 = 14,565 (Gross fare) Less (Commission earned ) = -327.65 Add (TDS deducted 5% of comm) = 16.38 Nett Payable Amount 14254/-

Can you please advice me how to raise tax invoice if I sell it @14,500 How to get ITC ?

Sir How to Generate invoice only in flight tickets booked by clients. What will be the procedure to claim GST?

In case flight ticket is booked by client himself then you will bill for only your commission as agreed upon and charge GST @ 18% thereupon. You cannot take input on that because the invoice is in the name of the client and not you.”

Sir, we are a travel agency offering bungalows, villas, tours packages and various services. What GST we should charge particularly on bungalows, villas, hotels to our client. Is it on the commission, if yes then customers might clearly know the business inside out and might refrain doing business with us in future. Also on what amount we have to file our ITC to get rebate or input tax credit

Hi Thanx for such an elaborate GST guidlines for travel agents. I just have a question: Many a times guests want a GST credit from their Flight and Hotel Bookings done through us. But these days most of the Travel agents use consolidators inventory for the same and don’t have option to put guests GST in those bookings so that he can get back the GST input. How to deal with these?

Also, in international bookings, how to deal with such GST issues?

Thanx. Atin.

Sir, please clarify, if the entity is working as a pure agent and charging 18% GST on the commission amount only. Will ITC be available on that GST amount on commission?

How much percent gst on visa to be charged to customer as a travel agent

Sir i am a travel agent in Port Blair , if my package cost (separate cost) HOTEL – 22000 CRUISE – 15000 VEHICLE COST = 8000 SERVICE CHARGE = 2000 THEN HOW CAN I GENERATE MY GST BILL , PLEASE ADVICE

How to show reimbursement amount in gst return . If tour and travel agent company paying margin basis gst.

I am working in a tour and travel agent company. I have a problem or confusion in gst return filling that if we are paying tax on margin basis in gst then I want to ask you how to show in gst return . What we have to show reimburse value in gst return in 3b or R 1 as a total invoice value . Please suggest me.

Hello Sir, Whether it is allowed to opt for both the options in the same financial year ie to pay GST @5%/18% for some clients and also act as a pure agent and charge GST @18% on commission for some other clients

Dear sir If we are working as a tour and travel agent and paying gst on services charge , Then in this case how to show total invoice amount in gst return. Suppose we give package to client Rs -1,00,000 including services charge.

Our purchase for of client is -85000 Our magin is -15000 Taxable. -12712 Gst,18%. 2288 Total. 15000 Then in gst return what total invoice value We have to show in gst R1 15000 or 100000 And in gstr3B what taxable value we have to show. -12712. Or another value . Please suggest me .

Where tour operator is preparing invoice on pure agent basis charging gst on only commission amount and taking only reimbursement of hotel booking, whether hotel invoice will be in the name of your operator or the client of tour operator who is service receipent? In case tour operator take hotel invoice in own name, what will be the consequences?

If a company is operating as a pure agent in few places , and as tour operator in few.. Can it bill 18% & 5% respectively and file in GST returns ?

Dear Mr Neeraj, In the below explanation, Is 18% mentioned assuming that the Tour operator has opted for the 18% GST ? or is it charged at 18% for both cases i.e 5% and 18% ? “Let’s understand this with our previous example. In that case, if the entity enters into an agreement with the customer to act as pure agent, then the entity will charge GST at the rate of 18% on Rs. 10,000/- only i.e. Rs. 1,800/- and will take reimbursement of Rs. 90,000/- as actual expense incurred on behalf of the customer.”

Hi Sir, you said generally small businesses act as pure agent and charge GST on commission/ Service charges only, Suppose a tour operator make hotel bookings not as per client requirement i mean fixed number of bookings every month then this tour operator aslo need to charge based on slabs? or how can this is chargable when he sell to their customers

Dear Sir, thanks for your advice. i just want to know the input tax credit allowed between two operators from same service – there is still doubt in this in many minds. So want to find out which particular section is this allowed under the Act? – input credit is allowed from same serivce in B2B. which particular section?

thansk and regards

Dear Sir please check also my quary

Simple and Lucid Explanation. Very nice and helpful

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GST on Tours and Travels: HSN Code and GST Rate on Travel Agents Services

Updated on : Jun 16th, 2023

11 min read

Depending on whether input tax credits (ITC) are available, there are now two separate rates of GST on tours and travels. Without the option of an ITC, a 5% GST is applied to the gross tour price, while an 18% GST rate is applied with ITC. These various rates have an impact on the total pricing for both travellers and tour operators.

Continue reading to learn more about tours and travels HSN code, and GST on travel agents.

Scope of taxation on tours and travels

The Goods and Services Tax (GST) regulations provide tour operators with three different ways to operate and claim input credits. Input tax credit (ITC) in GST refers to the tax amount that businesses can subtract from the tax owed on the purchase of goods and services.

Here is a detailed explanation:

Acts as a tour operator with no ITC: A tour operator charges 5% GST to the customer on the total package but does not claim any ITC.
Acts as a tour operator and claim ITC: The tour operator charges 18% GST to the customer on the total package and claims ITC. Although, it is important to consider the place of supply rule when claiming ITC.
Acts as a pure agent: The tour operator acts as an intermediary and raises an invoice to the customer charging 18% GST. However, the entity's role is that of a facilitator, and the actual expenses incurred for services like travel, hotel, and boarding are separately mentioned on the invoice and taken as reimbursements from the customer. The tour operator must maintain proper records of these expenses.

Value of supply for GST on tours and travels

If a tour operator works as a pure agent, then they can exclude the expenses incurred by the service provider from the value of their supply . This allows for a more accurate determination of the tax liability and ensures that the tax is levied only on the actual service provided by the pure agent.

Time of supply for GST on tours and travels

The time of supply for GST depends on whether the tour operator is acting as a pure agent or not.

If they are not acting as a pure agent, the GST should be charged and paid at the time of payment or issuance of the invoice, whichever occurs earlier. In such cases, the tour operator should recognise its revenue on a payment basis for GST purposes.

However, if the tour operator opts to act as a pure agent, the GST should be charged at the time when the final invoice is raised or when the commission is received, whichever happens, earlier.

Place of supply for GST on tours and travels

When making a hotel reservation, the place of supply is the city in which the hotel is located, and the hotel will include GST in its invoice. However, the company cannot claim ITC on that specific invoice if it is not registered for GST in the place of supply.

The same applies to flight tickets, where the place of supply is the place of flight departure. If the tour operator is not registered under GST in the state from which the flight departs, ITC cannot be claimed for that invoice.

GST on tours and travels with HSN code

Under Heading 9985 of the GST Tariff Act, the applicable GST rate for tours and travel services is 5% if the following conditions are met.

The tour operator providing the services will not be eligible for ITC on services like hotels, air tickets, etc. However, ITC can be claimed on tour operator services obtained from another tour operator.
The tour operator must indicate in its invoice that the charged amount is the gross amount and includes charges for accommodation and transportation.

Here is a tabular representation of tours and travels SAC code and GST on travel agents’ services:

Availability of ITC claims on tours and travels GST rate

In case the tour operator chooses to charge GST at the rate of 18% on the total amount, it will be eligible to claim ITC on various services such as rent, professional fees, lease lines, telephone, etc.

Here is a more detailed explanation of ITC availability on tours and travels GST rate:

Air travel agents can claim ITC on the GST paid for commission or service charges.
Inbound tour fees charged on a commission basis are subject to 18% GST with ITC.
ITC can be claimed if the service is outsourced from another agent.
Hotels charging a commission will have 18% GST applicable, and ITC can be claimed.
All other renting services are charged at 18% GST, with ITC

Frequently Asked Questions

Can air travel agents avail for ITC?

Yes, air travel agencies are eligible for an ITC on the GST they paid on the commission they got from passengers or travellers.

Is GST applicable to the cab service providers like Ola, Uber, etc.?

Yes. According to section 9(5) of the CGST Act, all cab-service companies are required to pay GST.

Is a tour operator taxable?

Tour operators are considered ‘people’, but the brokerage charged by them is taxable.

How much GST is on a flight ticket?

The GST on economy flight tickets is 5%, whereas that for business and premium economy is 12%.

About the Author

I preach the words, “Learning never exhausts the mind.” An aspiring CA and a passionate content writer having 4+ years of hands-on experience in deciphering jargon in Indian GST, Income Tax, off late also into the much larger Indian finance ecosystem, I love curating content in various forms to the interest of tax professionals, and enterprises, both big and small. While not writing, you can catch me singing Shāstriya Sangeetha and tuning my violin ;). Read more

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Travel Agent and Tour Operator Services: GST

April 13, 2023.

If you are a travel enthusiast who enjoys traveling but does not want to deal with the time-consuming process of searching for and booking hotels, transportation, and so on, you may be a travel-agent type of traveler, but you should be aware that your travel budget is not only exceeded by travel commission but GST is also paid for all such services. So you also pay the government. Determine how much of your budget is going to the government in the form of GST.

Definition:

Types of income sources for travel agents and tour operators:, 1. air ticket booking:, 2. hotel booking:, 3. services like visa/passport:, 4. rail ticket booking:, 1. inbound tour: india tour for foreign travelers, 2. outbound tour: foreign tour for an indian/foreigner, conclusion:, frequently asked questions:.

A “Travel Agent” is a person or entity who acts as an intermediary and sells holiday packages and tours. Their services include accommodation, rail/air ticket booking, sightseeing, cab pickup drop, etc. The services they provide are commission based, on which they receive a certain amount of commission which is taxable and falls under the GST regime.

“The Tour operator” is a person or organization responsible for organizing, planning, and scheduling trips and holiday packages. They are brokers who provide such services and charge brokerage or fees for the same. The amount of brokerage is taxable, and GST is applicable to it.

A travel agency has two significant sources of income from which they can charge commission/service fees by raising an invoice to below mentioned:

1. The airline/hotels – actual service providers

2. Customer/Client

Let us check how much and what % of GST is applicable in either of the above ways.

Chargeable Services of Travel Agents

The chargeable services of Travel Agents are as follows:

1. Air Ticket Booking

2. Hotel Booking

3. Services like Visa, Passport

4. Rail Ticket Booking

Now, let us understand what percentage of GST applies to the services mentioned above:

18% GST will be applicable on the commission received by an agent through the airline as well as the service charges collected from the customer. Now let us understand the bifurcation of GST to be paid on the commission received from Airlines and Air travelers.

GST on Commission received from Airlines:
In the case of Domestic Air Ticket – 18% on 5% of the Basic fare.
In the case of International Air Ticket – 18% on 10% of the Basic fare.
GST on processing fees received from Air Traveller:
GST @ 18% on the invoice value from Air Traveller.

GST will be applicable on bookings done through agents or intermediaries. Again, two ways GST will be charged, so let us understand in detail so we can get know which type of GST will be applicable, i.e. ( IGST or CGST + SGST )

When the Agent receives a commission from the Hotel:
If the Hotel is located in India, i.e., domestic, then the place of supply will be the location of the Hotel.
If the Hotel is located outside of India, the place of supply will be the Agent’s location.

Let us comprehend all of this using an example:

• When the Agent receives a commission from Traveller:

If a traveler is registered, then the place of supply will be the traveler’s location.
If the traveler has not registered, the location of the supply will be the Hotel.

Visa and Passport services can be provided in two ways:

• Visa Statutory Authorities:

If a customer directly approaches Visa Statutory Authorities, then the charges charged by the Statutory Authorities are exempted from GST.

• Visa Facilitation Centres:

If a visa/passport is obtained from facilitation centers or through a travel agent, then the same shall be taxable. When an air travel agent provides these services by adding his commission, the same will be taxable at 18% GST, and he can take ITC of the tax paid to Visa Facilitation Centres.

A traveler has two ways to book a train ticket. He can book it through a rail travel agent or directly through railways. If he books a ticket through a rail travel agent, then GST will be applicable at 18% on the commission charged by the Agent to the traveler. At the same time, no commission is paid by the railways to the Agent for the booking.

These were the GST on several services provided by the Agent. Now, what about the GST on the Tour operator services or company? They sell entire tour packages and let’s check whether they will be liable to pay GST.

A. If Service provider and Recipient, both are in India:

1. Recipient is Registered – Place of supply will be the location of the recipient.

2. Recipient is Unregistered – Place of Supply will be the location of the recipient, if the address on records exists.

B. If Either the Service Provider or Recipient is outside India:

GST on the Sale of Tour Packages

➢ If the customer is charged on a principal basis for the inbound tour, 5% GST will be charged without benefit to claim ITC.

➢ If the customer is charged on a commission basis for the inbound tour, then 18% GST will be charged with the benefit of claiming ITC.

If the customer/traveler is made to pay on a principal basis and also registered, the place of supply will be the location of the customer.
If the customer/traveler is charged on a principal basis, but is not registered, then the place of supply will be the customer’s location per the service provider’s records.

According to the detailed explanation above, all services provided by travel agents or tour service providers to customers are subject to taxation under the GST tax regime. So, make sure you understand the GST that your travel agent charges you for the services he provides, so you can plan your next trip budget with confidence.

1. What is the full form of ITC?

Ans: ITC means Input Tax Credit.

2. What is the meaning of Input Tax Credit?

Ans: Input Tax Credit is the tax a business can claim to reduce their tax liability to the limit of GST paid on purchases.

3. Can air travel agents avail for ITC?

Ans: Yes, the air travel agents can avail of ITC on GST paid on the commission received from the passenger/traveler.

4. Is GST applicable to the cab service providers like Ola, Uber, etc.?

Ans: Yes, Cab service providers like Ola and Uber are liable to pay GST to the government as per section 9(5) of the CGST Act.

5. Are Cab drivers liable to get registered and pay GST?

Ans: No, it is not mandatory for cab drivers to register, and they are also not liable to pay any tax.

6. What if I want to avoid claiming ITC? How much GST do I have to pay?

Ans: You are liable to pay 5% GST on the total amount if you want to avoid claiming ITC for CAB rental services

7. What is SAC? And what is the meaning of it?

Ans: SAC code means Services Accounting Code. SAC is applied to all the services provided within India.

8. Why is the SAC code used?

Ans: SAC code is used to bifurcate, identify and determine the type of services provided and the rate of tax to be charged.

9. Why is it necessary to know the place of supply of the Agent?

Ans: Place of Supply will help us to determine the type of supply, i.e. Intra- State or Interstate.

10. What is the complete form of the HSN Code?

Ans: HSN Code means Harmonized System of Nomenclature Codes.

11. What is the difference between the HSN and SAC codes?

Ans: SAC codes are used for the provision of services, whereas HSN codes are used for the Sale of Goods.

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GST on Travel Agents and Tour Operator Services

The travel and Tourism sector holds great strategic importance in the Indian economy, providing several socio-economic benefits. Apart from providing employment, income, foreign exchange for the country, the trade in the tourism sector has an economically positive impact on other associated industries such as food manufacturing, services, construction, etc. In addition, investments in infrastructural facilities such as transportation, accommodation, and other tourism-related services lead to the overall development of infrastructure in the economy.

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Name, Contact Number and Email Id of Stakeholder.

Self Attested PAN, Aadhar & Passport size photo of Stakeholder.

Specimen Signatures of Stakeholder.

Latest Electricity Bill/Landline Bill of Registered Office.

NOC from owner of registered office. (If Owned)

Rent Agreement from Landlord. (If Rented/Leased)

Brief description of main business activities of the proposed Company.

Cancelled Cheque in business name (After GST Approval)

All you need to know about Taxation of Travel Industry!

What is a tour operator.

“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.

Two Major Business Models of Tour Operators

Tour Operator who works to provide Tour Package: Here total booking is done by the tour operator and the total fees charged shall include his margin. So the Tour Operator become service provider and in turn he receives services from various other counterparts like Airline Companies, Hotel, Local Taxi Operators, Restaurants, Embassy issuing visas.

Tour Operator who works just as a pure agent: The tour operator only facilitates the transaction and helps traveller to identify various suppliers as per their requirements and arrange for its booking. Payment flow goes straight away from actual traveller to end service provider and tour operator only charges for its service portion from traveller.

As per rule 33 of CGST Rules 2017 – Value of supply of services in case travel agent acts as Pure agent is, the expenditure or costs incurred by a supplier as a pure agent of the recipient of supply shall be excluded from the value of supply, if all the following conditions are satisfied, namely,-

(i) the supplier acts as a pure agent of the recipient of the supply, when he makes the payment to the third party on authorisation by such recipient;

(ii) the payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pure agent to the recipient of service; and

(iii) the supplies procured by the pure agent from the third party as a pure agent of the recipient of supply are in addition to the services he supplies on his own account.

Explanation - For the purposes of this rule, the expression “pure agent” means a person who-

(a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both;

(b) neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply;

(d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account.

Hotel and Flight booking with Backend Commission- Here Tour operator does not charge any fees from the customer. He only facilitates the transaction and help traveller to identify various suppliers as per their requirements and arrange for its bookings. In turn the ultimate supplier pays commission for promotion and generating sales for them. It is mainly used in Hotel Booking & Flight Booking.

GST Applicability on Tour Operator Business

Every tour operator who has a turnover of more than Rs. Twenty lakhs in a fiscal year shall mandatorily obtain GST Registration. Furthermore, in the case of specific categories or particular states, the turnover limit is Rs. ten Lakhs. In simple words, tour operators in states:

Arunachal Pradesh
Jammu & Kashmir
Himachal Pradesh
Uttarakhand

Will have to obtain GST Registration and do GST Return Filing if their annual turnover is more than ten Lakhs Rupees.

However, it is essential to note that the threshold limit of turnover doesn’t apply in some cases. For example, the person making inter-state taxable supply. To illustrate, a person who, as an operator or otherwise, provides taxable supplies of goods or services, or perhaps both, on account of another taxable person, such as an air travel agency, must get GST Registration in India.

GST on Different Types of Income Sources of Tour Operators

A travel agency/agent may earn his/her commission from two major sources: the actual service provider (airlines, hotel, etc.), and the customer, and therefore, will produce two different invoices, as follows:

GST on Air Ticket Booking Services by Agents

18% GST will be levied on the commission income earned by air travel agents from airlines as well as on service charges and other charges collected from the passengers.

ITC is available on GST paid on commission/ service charge by an air travel agent.

Commission/incentive paid by the airline company

In case of Domestic ticket – 5% of basic fair
In case of International ticket – 10% of basic fair

GST on travel agents commission is charged at the rate of 18%.

The type of GST (CGST/IGST/SGST) to be imposed on the commission income of a travel agent depends on the location of supply.

Customer located in India & registered under GST: location of the customer
Customer located in India, not registered under GST, but address available: location of the customer
Customer address not available: location of the agent

GST on the Sale of Tour Packages

There is 5% GST on tour operator services or company, without the benefit of ITC. 5% GST will be paid on the gross commission/fee charged from the customer.

From GST perspective, the tour packages can be divided into the following two categories:

1. Inbound Tour – tour of India for foreigner travelers

If the inbound tour fee is charged on Principal basis, GST shall be charged at the rate of 5% without ITC.

If the inbound tour fee is charged on Commission basis, GST shall be charged at the rate of 18% with ITC.

2. Outbound tour – Tour outside India for an Indian/foreigner

For outbound tour packages being offered to a person based in India, the location of supply will be the location of the service receiver.

For outbound tour package offered to a foreigner for visiting another foreign country, there is no GST charged on the commission received in convertible foreign currency.

GST on Travel Related Services like Visa, Passport, etc. by an Agent or Company

GST is not charged on any govt fees or consular charges paid for the particular services on behalf of the customer.

GST @18% will be levied on the Service Charge paid on travel-related services like Visa, Passport, etc.

ITC on GST paid can be claimed if the service is outsourced from another agent.

GST on Booking of Hotel/Cruise by Agent

In case of domestic hotel, the location of the hotel shall be the place of supply. And in case of international hotel booking, the place of supply shall be the location of the service (booking) provider (agent/company).

For hotel booking services, GST will also be charged on the commission received from passengers.

GST on Commission of Rail Travel Agents

18% GST is levied on the service charge (commission) collected by a rail travel agent from the customer.

No commission is paid by the railways to such agents, and therefore no GST is levied in this case.

GST on Rent-a-Cab Service

5% GST will be paid by a cab operator on the service charge collected from a customer on renting of a motor cab, including the cost of fuel.

No ITC is available on the GST paid.

For all other renting services, not covered above, GST will be charged @18% with ITC availability.

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What is Meant by Tour Operator?

“Tours operators” are persons engaged in the planning, scheduling, organising, and arranging of tours (including accommodations, sightseeing, or other similar services) by any mode of transportation. Tour operators include anyone who operates tours as a business.

Business Models – Tour Operators

There are several business models which are relevant in the travel industry. Vendors sell travel-related merchandise, airline tickets, temporary accommodation for travellers, bookings, reservations, and other services . Vacation rental owners and managers typically use this space to advertise their items in order to increase business opportunities and awareness. According to Statista research, the revenue share of the online worldwide travel and tourism market will be 65% from 2017 to 2025, making it a profitable business with multiple income methods.

Also Read: What are the 6 Profitable Dealership Business Ideas in India?

Tour Package:

The tour operator makes the entire booking here, and the total fees charged include his margin. As a result, the Tour Operator becomes a service provider and receives services from a variety of counterparts, including airlines, hotels, taxi operators, restaurants , and embassies issuing visas.

Pure Agent Tour Operator:

A pure agent tour operator facilitates the transaction and assists travellers in finding suitable suppliers based on their requirements. Travellers pay directly to the end service provider, and the tour operator only charges them for its services.

By Rule 33 of CGST Rules, 2017 – Value of supply of services: If the travel agent acts as a pure agent, they can exclude the supplier expenses if they meet the following criteria.

When the supplier makes the payment to the third party on behalf of the recipient, he acts as a pure agent of that recipient.
Pure agents issue invoices to recipients of services separately, indicating their payment on behalf of the recipients of services.
In addition to the services the pure agent provides on his account, the pure agent procures supplies from the third party as a pure agent of the supplier.

Flight and Hotel Booking with Backend Commission

Using backend commissions for hotel and flight bookings mean that no fees are charged to the customer by the tour operator. As part of his service, he facilitates transactions, helps travellers identify suppliers according to their needs, and arranges their bookings. The ultimate supplier then pays a commission to promote and generate sales. Hotel bookings and flight bookings are primarily made with it, making it a lucrative form of revenue model.

GST Registration Requirements

GST registration is mandatory for all suppliers whose aggregate turnover exceeds ₹ 26,00,000 in a financial year. Category states are subject to a limit of ₹ 10,00,000.

Further, the threshold limit of ₹ 20,00,000 is not applicable in the following circumstances:

Also Read: Start A Reliance Petrol Pump Dealership Business

Taxable inter-state supply by a person

As an agent or otherwise, an air travel agent makes taxable supplies of goods or services on behalf of another taxable person.

Travel Agents Outward Supply – SAC Codes

The following table lists the SAC codes of travel agents for outward supply.

How is GST Calculated on These Items?

Besides receiving commissions from airlines for booking air tickets, air travel agents also receive processing fees. Airlines book tickets on behalf of a client. It is necessary to generate two separate invoices since the income is by airlines and clients.

Passenger commissions / PLB (performance linked Bonus)/ upload incentives/service fees must include GST.

The First Option

On the issue of invoices on airline/consolidated, they will charge GST at 18% on commissions, PLA upload incentives (Production Linked Incentive ), or any other incentives. The service fee is 18% on invoices issued to passengers.

The Second Option

According to CGST Rule 32, an air travel agent can charge 5% on the value of the supply of services relating to booking air tickets. Passage by air charges 10% of the basic fare for domestic and 10% for international bookings.

Also Read: Online Business: Advantages and Disadvantages

Is IGST or CGST/SGST to be Imposed?

By Sec. 12(2) of the IGST Act, air travel agents provide services to persons in India who are registered under the GST law, and the place of supply is the location of the service receiver.

It shall be the location of the receiver of the services if the person is in India and not registered under GST but whose address is on record.

If a service is provided to an Indian resident who is not registered under the GST Law and whose address is not on record, then the place of supply shall be the service provider’s address.

Commission on Hotel Bookings

As far as hotel bookings are concerned, the tour operator acts as an intermediary. For domestic hotel bookings, the collection place of supply is the hotel’s location per the general rule. For international hotel bookings, the collection site is the agent’s location.

When both the Tour operator and the recipient of the service are in India, the place of supply shall be –

If the recipient is a registered person, the location of the recipient
In the case of an unregistered recipient,

a. The area where the recipient’s address is recorded

b. In all other cases, the site of the service provider

The place of supply, in this case, shall be the location where the services are performed when the Tour operator’s background is in India and the recipient’s area is outside of India.

With no ITC benefit, GST will be 5%

Also Read: The Rewarding World of Money Earning Websites

Car Rental Services and Travel Insurance

The provision of a car on hire (with or without a driver) to the passenger or any agent for service charges and markups.

If the recipient of the services is registered under the GST law, the place of supply is the location of the service recipient. The collection area shall also be the location of the service recipient if the recipient is not registered under the law, but his address appears in the records. The place of supply shall be the service provider’s location if the person’s address is unavailable.

The service recipient must pay 18% GST on motor cab rentals if the recipient bears fuel costs.

Travel agents issue Mediclaim and travel insurance through various providers. They receive commissions either on a cut-and-pay basis or at the end of the month (for overseas policies). Registered insurance agents must issue medical insurance and travel insurance policies in India. By the 1938 Insurance Act, agents must register with the IRDA.

If you register under GST law , you shall consider a GST-registered recipient in India.

Similarly, if the recipient is not registered under the law, their location is found in the records. The place of supply shall be the location of the service recipient. The service provider’s location shall be the place of supply if the person’s address is unavailable on records.

Mediclaim policies or travel insurance services provided to a person outside India fall under the ‘Intermediary’ services category. Thus, the place of supply shall be the service provider’s location.

The GST rate for this service is 18%.

Railway Commission

The place of supply shall be determined based on Section 13(9) if the agent receives a commission from a foreign railway company with its registered office outside of India, i.e. the agent’s place of business.

Whenever an agent receives commissions from a foreign railway company with its headquarters in India, the place of supply shall be determined under Section 12( 2), i.e. The place where the service is provided to a registered person.

In the absence of a registered recipient, the location of the provider of service shall be the address on record of the recipient in any other case.

According to Section 12(2 ), if the agent receives Service charges from the Pax, the place of supply shall be determined as follows: A registered person’s location. If such a person is not registered, the collection position shall be determined as follows:

Located at the address on record for the recipient
In any other case, the location of the service provider

Railway bookings are subject to 18% GST.

After reading this article, you will have a clear idea of all the GST-related queries regarding tour and travel agents in India. The GST for travel agents and tour operators in India continues to be an ideal system of taxation which considers every intricacy of the trade and provides suitable options for taxation.

For example, GST must be levied and paid at the time of payment or invoice, whichever comes first. As a result, for GST purposes, a firm must recognise revenue on a payment basis. However, if a company chooses to serve as a ‘Pure Agent,’ the GST will be charged when the final invoice is raised, or the commission is received, whichever comes first.

Such an adjusting system has helped the industry take a leap and has been a huge boost for its growth.

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GST on Tour Operator Services

As per Heading 9985 of GST Tariff Act, 2017, The rate of GST would be 5% ( 2.5% CGST+2.5% SGST ) provided following conditions are met,

1. Input tax credit on services availed by the entity will not be available. However, Input Tax Credit on the services taken from other Tour Operator are allowed.

2. The entity shall indicate in its invoice that the amount charged is gross amount and inclusive of charges of accommodation and transportation

Further, in this case the entity must raise an invoice indicating specifically that the amount charged is gross amount and inclusive of charges of accommodation and transportation.

As per section 2(13) of IGST Act, 2017 ,

And as per the Explanation to Rule 33 of CGST Rules, 2017,

“Pure agent” means a person who—

enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both;
neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply;
does not use for his own interest such goods or services so procured; and
receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account.”

However, in this model, there are certain conditions which needs to be complied with. As per Rule 33 of CGST Rules, 2017,

the supplier acts as a pure agent of the recipient of the supply, when he makes the payment to the third party on authorization by such recipient;
the payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pure agent to the recipient of service; and
the supplies procured by the pure agent from the third party as a pure agent of the recipient of supply are in addition to the services he supplies on his own account”

A graphical flow chart will explain both the options in much better way,

Let’s understand this with graphical depiction,

The GST shall be charged and paid at the time of payment or invoice whichever is earlier. Therefore, for the purpose of GST, the entity shall recognize its revenue on the payment basis.

However, if the entity opts to act as ‘Pure Agent’ the GST shall be charged when the final invoice is raised or the receipts of the commission whichever is earlier.

GST on Tour Operator & Travel Agents

Radha Dhaked | March 20, 2023 March 20, 2023 | GST

Tourism is a significant contributor to the Indian economy, providing socioeconomic benefits and positively impacting industries like food manufacturing, services, and construction. It creates jobs, generates income and foreign exchange. The tourism and hospitality industry includes accommodations, catering, transportation, attractions, and travel agencies/tour operators. Learn more about the GST on tour and travel agencies below.

Business Models for Tour Operators

Tour operators can use different business models to sell travel-related services and merchandise.

The following are some popular business models for tour operators:

Tour Package: The tour operator includes their margin in the total fees charged, acting as a service provider that coordinates bookings with various counterparts.
Pure Agent Tour Operator : The tour operator helps travellers find suitable suppliers and facilitates transactions but only charges for their services, not the end service provided.
Flight and Hotel Booking with Backend Commission: The tour operator facilitates transactions and bookings without charging customers any fees. Instead, the ultimate supplier pays a commission to generate sales.

GST Registration for Tour Operator & Travel Agents

Every business in India whose aggregate turnover in a financial year is above Rs 40 Lakhs and Rs. 20 lakhs in special category states will have to get GST Registration Mandatorily.

So, tour operators and travel agents also need to get GST Registration Online as per above GST Registration Threshold Limit.

Furthermore, GST Registration is mandatory, if tour operators and travel agents make inter-state taxable supply or makes taxable supply of goods or service or both on behalf of other taxable people,

Learn in detail: GST Registration for tour operators

GST Implications on Various Travel Related Services by Agents

Gst on air ticket booking services by agents.

18% GST on commission income, service charges, and other charges collected from passengers
Input Tax Credit (ITC) available on GST paid on commission/service charge by an air travel agent
GST on travel agents’ commission is charged at 18%
The type of GST imposed depends on the location of supply

In addition to this, consider reading: GST on air tickets

GST on Sale of Tour Packages

5% GST on tour operator services without ITC
5% GST on gross commission/fee charged from the customer
GST on inbound tour fees charged on Principal basis at 5% without ITC
GST on inbound tour fees charged on Commission basis at 18% with ITC
GST on outbound tour packages being offered to a person based in India charged at the location of service receiver
No GST charged on commission received in convertible foreign currency for outbound tour packages offered to foreigner for visiting another foreign country

GST on Travel Related Services like Visa, Passport, etc. by an Agent or Company

No GST charged on government fees or consular charges paid for the particular services
18% GST levied on Service Charge paid on travel-related services like Visa, Passport, etc.
ITC can be claimed if the service is outsourced from another agent

Understand in detail: GST on passport and visa services

GST on Booking of Hotel/Cruise by Agent

Place of supply depends on the location of the hotel for domestic hotel bookings and the location of the service provider for international hotel bookings
GST charged on the commission received from passengers.
18% on Commission received from the hotel. ITC is available.
If the hotel invoice is not in the name of the client, the tax will be based on the full amount charged for the booking.
Depending on the situation, the applicable GST rate will either be 12%-18% with Input Tax Credit or 5% without Input Tax Credit.
However, for international bookings not within the taxable territory, no GST will be charged.

Watch our detailed video at: How GST applies on hotel business?

Also read: GST Registration for Hospitality Business

GST on Commission of Rail Travel Agents

18% GST levied on service charge (commission) collected from the customer
No commission is paid by the railways to such agents, and no GST levied in this case.
The SAC (Service Accounting Code) assigned to Rail travel agents is 9967.

GST on Rent-a-Cab Service

5% GST paid by cab operator on service charge collected from the customer on renting of a motor cab, including the cost of fuel
No ITC available on GST paid
All other renting services charged at 18% with ITC availability

In conclusion, The Indian tourism industry is vital for the economy, creating jobs and boosting various industries. Tour operators use different business models and must register for GST if their turnover exceeds the threshold limit or as per other GST regulations. GST implications on various services, such as air ticket booking, tour packages, hotel and cruise booking, and rail travel agents’ commission, vary based on a number of factors.

GST on Transportation Sector

Moreover, If you want any other guidance relating to GST Return Filing or GST Registration , please feel free to talk to our business advisors at 8881-069-069 .

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GST HELPLINE

(Available in Desktop and Online(Cloud) Variant)

Due Dates: GSTR 3B, GSTR 1, (GSTR 9, and GSTR 9C) and GSTR 4 Respectively as Follows: 20 March, 11 March , 31 March and 18 Apr 2020 (Read a Guide)

GST Rate on Travel Agents & Tour Operator Services in India

September 30, 2019

GST is an indirect tax which is levied on the supply of goods and services of different kinds. The services provided by a travel agent or travel agency are also under the GST ambit. Here, we talk about the applicability and rate of GST on travel agents and tour operator services.

A travel agent is a person or entity that offers services related to planning, scheduling (booking) and managing trips/tours to their customers. The services provided by a travel company may include booking air/rail accommodation, cab hire, accommodation, sightseeing, etc.

A tour operator, agent or planner provides services on behalf of Airline companies, hotels, taxi operators, and others and get a commission/fee for the same. GST is charged on the commission amount.

GST on Different Types of Income Sources for a Travel Agent/Company

GST on Air Ticket Booking Services by Agents

18% GST will be levied on the commission income earned by air travel agents from airlines as well as on service charges and other charges collected from the passengers.

ITC is available on GST paid on commission/ service charge by an air travel agent.

Commission/incentive paid by the airline company

In case of Domestic ticket – 5% of basic fair
In case of International ticket – 10% of basic fair

GST on travel agents commission is charged at the rate of 18%.

The type of GST (CGST/IGST/SGST) to be imposed on the commission income of a travel agent depends on the location of supply.

Customer located in India & registered under GST: location of the customer
Customer located in India, not registered under GST, but address available: location of the customer
Customer address not available: location of the agent

GST on the Sale of Tour Packages

There is 5% GST on tour operator services or company, without the benefit of ITC. 5% GST will be paid on the gross commission/fee charged from the customer.

From GST perspective, the tour packages can be divided into the following two categories:

1. Inbound Tour – tour of India for foreigner travelers

If the inbound tour fee is charged on Principal basis, GST shall be charged at the rate of 5% without ITC.

If the inbound tour fee is charged on Commission basis, GST shall be charged at the rate of 18% with ITC.

2. Outbound tour – Tour outside India for an Indian/foreigner

For outbound tour packages being offered to a person based in India, the location of supply will be the location of the service receiver.

For outbound tour package offered to a foreigner for visiting another foreign country, there is no GST charged on the commission received in convertible foreign currency.

Recommended: GST Impact on Tourism Industry in India

GST on Travel Related Services like Visa, Passport, etc. by an Agent or Company

GST is not charged on any govt fees or consular charges paid for the particular services on behalf of the customer.

GST @18% will be levied on the Service Charge paid on travel-related services like Visa, Passport, etc.

ITC on GST paid can be claimed if the service is outsourced from another agent.

GST on Booking of Hotel/Cruise by Agent

For hotel booking services, GST will also be charged on the commission received from passengers.

GST on Commission of Rail Travel Agents

18% GST is levied on the service charge (commission) collected by a rail travel agent from the customer.

No commission is paid by the railways to such agents, and therefore no GST is levied in this case.

GST on Rent-a-Cab Service

5% GST will be paid by a cab operator on the service charge collected from a customer on renting of a motor cab, including the cost of fuel.

No ITC is available on the GST paid.

For all other renting services, not covered above, GST will be charged @18% with ITC availability.

YOU CAN ALSO CHECK THIS

Understanding GST Rates and SAC Codes for Services Offered by Travel Agents

GST Alerts: Travel Agents & Tour Operators GST Overview

In today’s era, where traveling has become an integral part of people’s lives, be it for leisure or business, understanding the complexities of expenses related to it is crucial. One such aspect that often gets overlooked is the application of GST rates on services provided by travel agents and tour operators. The Goods and Services Tax (GST) council has introduced specific rates for various types of expenses related to travel, which travelers need to be aware of to plan their budgets effectively.

1. Introduction to Travel Agents

But let’s first understand the role of a travel agent. A travel agent acts as an intermediary between travelers and service providers such as hotels, airlines, car rentals, and tour operators. Their primary responsibility is to facilitate the travel planning process for their clients by offering consultancy services and comprehensive travel packages.

2. Comparison Between Tour Operators and Travel Agents

It’s essential to differentiate between tour operators and travel agents to grasp the nuances of GST application accurately.

3. Threshold Limit for GST Registration

Both tour operators and travel agents are required to register for GST if their turnover exceeds specific thresholds. For tour operators, the threshold is Rs. 20 lakhs, while for travel agents, it’s Rs. 10 lakhs. However, certain states have different turnover limits.

4. Determining the Place of Supply

The place of supply plays a crucial role in determining the applicability of GST. For instance, if a hotel or cruise is located in India, the place of supply would be the location of the hotel or cruise. However, if the hotel or cruise is outside India, the place of supply would be the location of the travel agent.

5. Applicable GST Rates for Travel Agents

Travel agents are required to levy 18% GST on their commissions. However, specific rules apply when the agent provides air transportation services, where GST rates differ based on whether the booking is domestic or international.

Domestic booking: 5% of the basic fare
International booking: 10% of the basic fare

6. GST Rate and SAC Code for Various Travel Services

Understanding the SAC codes and corresponding GST rates is essential for both travelers and travel agents to ensure compliance with GST regulations. Here’s a breakdown of some key services:

7. Conclusion

In summary, grasping the intricacies of GST rates and SAC codes for travel services is vital for agents and travelers alike. This understanding ensures compliance, transparent pricing, and smoother transactions. By mastering these codes, agents streamline operations and enhance customer satisfaction, while travelers gain clarity on taxes incurred. Ultimately, this knowledge empowers both parties to navigate the travel industry confidently and efficiently.

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Moscow Tours & Travel Packages 2024/2025

Our 60 most popular moscow trips. compare tour itineraries from 45 tour companies. 308 reviews. 4.7/5 avg rating., popular moscow tours.

St Petersburg & Moscow in Style - Winter

Explore the majestic St Petersburg & Moscow on private city tours
Admire the rich Russian history, art and architecture
Travel to Moscow on a highspeed train
Enjoy the local cuisine in stylish restaurants

Lower Volga Voyage

Visit magnificent Red Square and Kremlin and examine the collection at theKremlin’s State Armory.
Experience Russia’s diverse musical traditions at lively folk music performances
Explore Volgograd, the site of the decisive battle of World War II’s eastern front

Volga Dream Russian River Cruise

St Petersburg & Moscow in Style - Summer

White Russian - 7 days

Discover Moscow's UNESCO-listed Red Square, home to spectacular St Basil’s Cathedral, Lenin's Mausoleum and the historic GUM Department store
Explore the grounds of Moscow's mighty Kremlin, with its numerous governmentbuildings, gold-domed cathedrals and the giant tsar bell
Celebrate New Year's Eve in Moscow!
Take in the highlights of St Petersburg including a guided tour of the exquisite Church on Spilled Blood, Peter & Paul Fortress and Cathedral
Take a guided tour of the remarkable Hermitage Museum at the Winter Palace

Vodka Shot - 6 days

Explore the beautiful city of St Petersburg, including the exquisite Church on Spilled Blood, Peter & Paul Fortress and Nevsky Prospekt
Marvel at the dazzling array of art and exhibits in the world-famous Hermitage Museum, at the Winter Palace in St Petersburg
Discover a lavish residence of the tsars on a day trip to Catherine Palace at Tsarkoe Selo (winter: mid-October to April) or Peterhof Palace and gardens (summer: May to mid-October)
Take in the highlights of the capital on a walking tour, visiting Moscow's famous Red Square, home to the historic GUM Department Store, Lenin’s Mausoleum and spectacular St Basil’s Cathedral
Take a guided tour of the Moscow Kremlin, Russia’s political power house. Stroll around the grounds of this fortified complex, visit the Kremlin's cathedrals and see the mighty Tsar Bell

Route of the Romanovs - 10 days

Learn about the last days of the Romanovs in Yekaterinburg, visiting the sites where Tsar Nicolas II and his family were assassinated and buried
Straddle two continents at the famous obelisk Europe/Asia border marker in Yekaterinburg
Experience the Trans-Siberian railway on an overnight train journey from Moscow to Yekaterinburg

New Year's in Moscow - 9 days

Visit Catherine Palace at Tsarkoe Selo on Christmas Day and marvel at the incredible Amber Room
Spend a night in Novgorod, an ancient city by the Volkhov River - explore the kremlin, cathedral and other sights and enjoy a traditional Russian banya (sauna)

All Moscow , expedition cruises, self guided adventures and vacation packages. Find the best guided and expert planned vacation and holiday packages. Read more about Moscow

Small Group Moscow Tours

Back in the USSR - 7 days

Russian Revolution - 9 days

Visit historic Novgorod, an ancient city which straddles the Volkhov River. Explore the attractive riverside kremlin and experience a traditional Russian banya (sauna)

The Snowball - 6 days

Visit Catherine Palace at Tsarkoe Selo and marvel at the incredible Amber Room

Mood for Moscow - 4 days

Head underground to visit a Stalinist-era Soviet Bunker on an optional excursion
Stroll to the vibrant Izmailovo Market, which lies behind the walls of an ancient Kremlin, and shop for an array of souvenirs

Best Moscow Tours by Duration

Tours, Cruises & Private Trips

Best Moscow Tours by Price

Top Moscow Attractions & Experiences

Moscow Tours & Travel Guide

Moscow Attractions & Landmarks Guide

Moscow reviews & ratings, capitals of the north.

some hotels could have been better

It was jam packed with every place I wanted to go and see. I especially love my photo of us setting out on the night time river cruise in St Petersburg and the Peter...

I really did not buy much and what I did buy was small gifts for others .

Johanna-Marie

Good hotels, some better than others. Interesting itinerary

Too rushed. Optional tour rather too short

See all Moscow reviews

Moscow Tours FAQ

1. Does Travelstride have all the tour operators?

2. How does the Member Savings program save me money?

3. Can I trust the tour operator and trip reviews on Travelstride?

4. What does ‘Stride Preferred’ mean?

10 Best Russia Tour Operators 2024 [Unbiased & With Reviews]

10 best russia tour operators 2024.

Are you planning to visit Russia, but unsure which tour provider to select? Now, you no longer have to waste time searching the internet and filling out dozens of contact forms. Simply fill out ONE form, we’ll send it off to multiple tour providers and they’ll contact YOU! You’ll be able to compare rates and find the lowest cost tour for the most affordable trip abroad.

Get Free Quotes From 10 Best Russia Tour Operators

Have you been thinking about an exciting trip to amazing Russia? Are you interested in enjoying a memorable tour in Russia ? Does the idea of visiting Russia with the top tour company sound great to you?

Russia, the world’s largest country, boasts a diverse landscape with castles, mountains, and frozen lands, complemented by exceptional cuisine. Whether in St Petersburg, Moscow, or Siberia, Russia offers opportunities to explore the Tundra and witness the Northern Lights. Enjoy skiing, visit volcanoes, palaces, and castles, and indulge in a vodka production tour.

Choosing the right tour company is crucial for a memorable trip to Russia. With numerous options available, investing in a top-rated company can save you time and money, ensuring a fun, safe, and regret-free adventure.

We strongly believe that without comprehensive and analytical research, you may end up spending a lot of money and time on a company that does not have your best interest. With our help, you will find well-researched and analyzed information about the top 10 tour companies in Russia to help make a solid and informed decision.

Continue reading to explore the top 10 highly rated tour companies in Russia and their best travel packages.

Table update Jan 19, 2024

Volgograd Sputnik Travel Company

As one of the Russia’s oldest tour operators, Volgograd Sputnik Travel Company has been providing travel-related services since 1991. The key focus of their tour is the city of Volgograd itself. This leading tour operator offers day-tours, excursions and even virtual tours of Volgograd and its surrounding areas. The company is led by a team of dedicated and friendly tour guides that will help you make the most of your visit throughout your stay. They believe in receiving their foreign guests with a positive attitude and thus, invite you on a tour of Volgograd.

Volgograd Sputnik Travel Company Best Russia Tour Packages

This company organizes many different activities for you to be a part of in their tour packages. Honor Soviet war heroes in their historic 3 Day Stalingrad Battlefield Tour . You will visit different sights along the Volga and Don rivers and see places of historical importance in this tour.

Don’t miss out on their sightseeing tour of Hero-City Volgograd . See major sights from the WW II era like the Alley of Heroes, Peace Street, Eternal Flame and many more.

The company also offers a unique tour of Rossoshka where you can observe German and Soviet cemeteries. The central attraction of this tour is a famous sculpture named the “Mourning Mother”.

Volgograd Sputnik Travel Company Reviews

Volgograd Sputnik’s long-standing history is marked by praises and appreciation from the many tourists they have served. This Russian travel company has 326 reviews on TripAdvisor and is ranked as #1 of 17 Tours & Activities in Volgograd. A past customer of theirs wrote:

Went on the big tour of Stalingrad this morning was out for about 5 hours with my man Mikhail. A bit pricey but a good engaging overview chauffeured and one on one… Alexander

Read all reviews of Volgograd Sputnik Travel Company on TripAdvisor .

Explore the diverse landscapes of Hungary by joining one of the 10 Best Hungary Tour Operators , guaranteeing an immersive and enjoyable trip.

Flotilla Radisson Royal

If you are looking for a luxurious cruise experience in Moscow then look no further than Flotilla Radisson Royal ! This top-reviewed Russian travel operator provides excellent tours on the Moscow River where you can enjoy the best views of Moscow. They have a fleet of 10 ice-class yachts that are fully serviced for sightseeing tours as well as large private gatherings. The team at Flotilla Radisson Royal is highly specialized in bringing you the comfort you seek on your trip to Russia.

Flotilla Radisson Royal Best Russia Tour Packages

Flotilla Radisson Royal provides a large array of tour packages on their first-class luxury yachts.

The company offers one of the most unique yacht cruises through the display of theatre! Book their Dinner with a Classic boat tour where you will watch an Italian drama performance. Enjoy the bewitching sights of Moscow city while fine-dining on special Italian dishes.

Their services also extend to themed cruises on their yachts. You can call ahead and book a customizable cruise. They offer sightseeing, romantic, theatrical, literary, family and gastronomic tours in this package.

You can also go on regular yacht cruises according to their yacht schedule. They will take you on a round-trip of Russia’s popular attractions.

Flotilla Radisson Royal Reviews

This tour company in Russia provides an interesting mix of exciting and luxurious boat trips that all customers seem to like. They have 1,127 reviews on TripAdvisor, out of which most are 5-star ratings. They are ranked as #2 of 96 Boat Tours & Water Sports in Moscow. A satisfied customer wrote:

This was a surprise for me by my partner and daughter. Getting onto the boat was very orderly, and our table was gratefully in a good position so Moscow at night could be appreciated… Pete17 Read all reviews of Flotilla Radisson Royal on TripAdvisor

ExploRussia

ExploRussia is a leading Russian tour operator that specializes in creating exceptional tours for global travelers seeking an authentic and local perspective in Russia. The agency is one of the best when it comes to showcasing Russia’s historical landmarks, beautiful landscapes, and contemporary culture. The company was first established in 2012 with the aim of responsible tourism in mind. Comprising a team of passionate and young entrepreneurs, the company is dedicated to bring you a fantastic vacation in Russia with personalized attention and off-the-beaten-track exploration.

ExploRussia Best Russia Tour Packages

The team at ExploRussia goes the extra mile with their tour packages to ensure that you have an unforgettable experience in their country.

You can choose to go on their Moscow Off the Beaten Path Tour where you will experience the local culture of Moscow without being in crowded streets. Explore the Orthodox Church, taste different Russian food and discover the major sights like Kremlin, Red Square and Bolshoi Theatre.

You can also explore traditional markets with your own local tour guide on their Moscow Food Tour . You will discover enchanting Russian cuisine and taste different kinds of food items that are remnants of the USSR.

For an adventurous journey, travel to the mountains of Altai near Moscow. In this 6 day tour of the Altai Mountains, you will be in close contact with nature while camping and horse-riding around local villages.

ExploRussia Reviews

As the pioneers of responsible tourism in Russia, ExploRussia has set a great example to other local and international tour companies. This Russian tour operator has 595 reviews on TripAdvisor and is ranked at the top as #1 of 1,116 Shopping in Central Russia. A recent customer of theirs wrote:

When I reached out to Olga from ExploRussia , she was already invested in my request , asking the right questions and pointing out the possibilities… Hassan M

Read all reviews of ExploRussia on TripAdvisor .

Explore the cultural treasures of Turkey by choosing one of the 10 Best Turkey Tour Operators , providing expert guidance.

St. Petersburg Guided Tours

St. Petersburg Guided Tours , founded in 2005, is a locally owned travel company in Russia. The company is founded by Valeria Grigoryeva, a licensed and qualified tour guide. They operate private and customized free tours. Their services include walking adventures, cultural, and historical tours. The guides are highly qualified professionals passionate about Russia’s history with extensive experience in the local and international travel industry. With this company, you will certainly have a memorable time traveling through the Russian countryside.

St. Petersburg Guided Tours Best Russia Tour Packages

For more than 15 years, St. Petersburg Guided Tours has improved and perfected fun, authentic, and luxury Russian tours to select from .

If you are looking to spend quality time with your partner, you can choose their Romantic Getaway Tour . On this excursion, you will visit the Empress Alexandra residence built in 1829.

You can also join the 2-Day comfort Tour carefully planned for you to see many city sights of St. Petersburg without waiting or standing in line.

They also have a popular 1-Day Private Tour that will give you value for your money by taking you for a day tour in St. Petersburg. After visiting famous museums, you will be introduced to traditional foods and vodka tasting.

St. Petersburg Guided Tours Reviews

This local tour operator in Russia has no shortage of great reviews and satisfied clients. They are ranked as #2 of 670 Tours & Activities in St. Petersburg and have 156 reviews on TripAdvisor. A customer that toured with them recently wrote:

Everything was very well organised by Valeria, from helping us with choosing the right accommodation, preparation of visas and including the right places to visit… Dmitri L

Read all reviews of St. Petersburg Guided Tours on TripAdvisor .

Archer Tour

Archer Tour is a local Russian travel agency that provides group and individual tours of major sights in Russia. Their aim is not to give you a lot of tours but to make each tour worthy and memorable. They also offer tailor-made and custom tours that you can plan according to your requirements. As a company, Archer Tour is continuously improving their services and trying to be one of the best tour companies in Russia. Your vacation to Russia will be worthwhile and entertaining with Archer Tour at your side!

Archer Tour Best Russia Tour Packages

From private and corporate escorts to boat trips, paragliding and flights, the range of tour packages that Archer Tour provides is absolutely immense.

Take their Sightseeing Tour of Kaliningrad and discover a unique blend of German and Soviet architecture. You can see museums, churches and military fortifications in this diverse tour package.

Also, their Baltiysk and Yantarny Tour provide historical background into Russia’s important monuments. In this trip, you can take a ferry to Vistula Spit as well as visit an amber factory and see amber production up close!

Archer Tour also provides VIP tours upon customers’ request. You will get the best luxury services, the highest level on comfort and a visit to the top locations and restaurants in their tailor-made VIP tours.

Ahtilahti Best Russia Tour Packages

Ahtilahti’s quality of service regarding their tours and tour packages are unmatched and they’ll ensure that you have the best vacation of your life in Russia.

Plan ahead and go on a Kayaking Tour of the Oredezh River . This trip is perfect for beginner rafters since there are no challenging rapids. You will get to enjoy the tranquil nature while having an exciting experience.

For a winter tour, you can opt for their phenomenal Skating Tour on Lake Baikal . As the oldest lake on Earth, Lake Baikal has a special wonder to it. Your guide will accompany you as you skate, have fun and enjoy the Siberian landscape in this amazing journey.

Explore their hometown of Kaliningrad on a road-trip . In this 7 day tour, Ahtilahti will take you a thrilling journey that covers all of Kaliningrad’s major as well as non-trivial attractions for a truly immersive experience.

Ahtilahti Reviews

Considered one of the most unique travel agencies in Russia, few companies can accomplish what Ahtilahti has accomplished through their tours. They have 171 reviews on TripAdvisor and are ranked as #2 of 157 Boat Tours & Water Sports in St. Petersburg. This is what a satisfied customer said about them:

Excellent experience with SUPsurfing starting from narrow channel in SpB center and going to Neva river. Surfing is safe, supervised by both guiedes Asja and Dmitry… Dr D

Read all reviews of Ahtilahti on TripAdvisor .

As a fully licensed tour company in Russia, Alla Tours proudly offers the best tour and travel services in Russia. Established in 2005, the company is renowned for its top-notch tour guides and detailed itineraries. Their top priority is offering fulfilling, safe, and authentic tours for travelers worldwide. Based in St. Petersburg, Alla Tours has also developed tour excursions across Europe and the Baltic region. With personalized service in mind, Alla Tours will take you on a trip across Russia that will be imprinted in your memory for a lifetime!

Alla Tours Best Russia Tour Packages

With years of service in the tourism industry, Alla Tours offers an extensive array of tour packages in Russia to choose from. You can join their 1-day St. Petersburg Intro Tour and visit many spectacular venues, including the Peterhof Fountains and Garden and the Hermitage Museum. On this guided private walking tour of St. Petersburg, Russia, you will be able to see the city through the eyes of the locals.

If you have more time, you can take the 2-day St. Petersburg Royal Tour and combine top-ranked sights with a shore excursion. The tour is perfect for discovering Russia’s modern art, architecture, canals, and rivers.

Comfort is an essential factor during a vacation trip so the 2-Day St. Petersburg Comfort Tour combines top attractions, including the Church of the Spilled Blood, Hermitage Museum, and Peterhof Fountain Park.

Alla Tours Reviews

Alla Tours is a Russian tour operator that is well-respected by international as well as local tour companies. Their 4,798 reviews on TripAdvisor are a evidence to their top-notch service. They are ranked as #8 of 670 Tours & Activities in St. Petersburg. A past client of theirs wrote:

A full 2 day tour picked up from our cruise ship. Gives a great taste of all the major attractions. Not cheap but fully worth the cost. Cannot recommend highly enough… Mark_Dornoch

Read all reviews of Alla Tours on TripAdvisor .

Embark on a Scandinavian getaway in Finland. Join one of the 10 Best Finland Tour Operators , guaranteeing a memorable and relaxing vacation.

Moscow Private Tours

Moscow Private Tours , founded in 2011, is one of the highest-reviewed tour companies in Russia. They cater exclusively to private and small groups ensuring the best quality service. They are the #1 Rated Private Tours in Moscow. They have their tourists’ best interests in mind and their tours are personalized, child-friendly and have flexible timings. Their tour guides are highly trained locals that will look after you on your trip. Your trip to Russia will be made easier and hassle-free through this company’s continuous efforts.

Moscow Private Tours Best Russia Tour Packages

Catering to small and private groups, Moscow Private Tours’ various tour packages are enjoyable and all-inclusive.

Enjoy the complete Kremlin experience on their Kremlin and Armoury Tour . Visit the State Kremlin Palace, see the Tsar Cannon and Tsar Bell and immerse yourself into medieval history and architecture, Soviet heritage and imperial treasures in this popular tour package.

Moscow looks the prettiest during the night. Go on their Night Moscow Tour with a private guide and see its major attractions like the Bolshoi Theatre and St Basil’s Cathedral.

Embrace the cultural swirl of Russian cuisine through their Russian Food Tour . From borscht to pancakes, eat your way through 3 different eateries and learn about traditional Russian food and their origins.

Moscow Private Tours Reviews

As one of the best-rated tour operators in Russia, Moscow Private Tours has a spectacular track record of many satisfactory clients. They are ranked as #9 of 540 Tours & Activities in all of Moscow and have over 1300 reviews on TripAdvisor. A customer who visited them recently wrote:

Very nice boat tour around Moscow with good dinner and excellent tour guide (Maria). Thanks for your service. I recommend it… Seradi155

Read all reviews of Moscow Private Tours on TripAdvisor .

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Bridge to Moscow

With more than 10 years of experience in the tourism industry, Bridge to Moscow is a highly-rated tour operator in Russia. They offer original and professional private tours in Moscow. They apply a personal approach to their customers, viewing them as friends rather than tourists. The company values commitment, safety and reliability above all else. Bridge to Moscow stands out from the rest through their team of licensed multi-lingual tour guides that dedicate all their efforts to bring you an excellent vacation in Russia.

Bridge to Moscow Best Russia Tour Packages

With over 97 detailed travel itineraries, you will have a large selection of tour packages to choose from.

If you are planning a trip to visit Russian churches, you can start with their Sergiev Posad Tour . This early 14 th century monastery holds intricate architecture and soulful history. See their iconic cathedrals, watch the church choir and visit local bakeries in this tour.

For a sightseeing tour of Moscow, you can book their Moscow in 1 Day tour package. You will be able to visit Moscow’s historic center, the Red Square and the presidential and state palaces. Don’t forget to check out their Moscow Metro as well.

Also, you can choose Glimpses of Baikal tour for a nature-infused experience. This 3 day tour will have you travelling through local villages to reach Lake Baikal. Once there, you can admire the breathtaking views of the oldest lake on the planet and its surrounding areas.

Bridge to Moscow Reviews

Bridge to Moscow’s tours has gathered a lot of positive reviews from many tourists that deemed them to be satisfactory. This Russian travel agency has 454 reviews on TripAdvisor and stands as #10 of 540 Tours & Activities in Moscow. A client that recently toured with them wrote:

The metro tour was very very interesting. My son loved it. And our guide Ivan was so friendly and knowledgeable… chandrasekar r

Read all reviews of Bridge to Moscow on TripAdvisor .

White Nights Travel

White Nights Travel is a unique company that offers a wide range of professionally customized private tours in St. Petersburg. The company’s bespoke services make them a popular tour company in Russia that provides programs suitable for seniors, families, and groups with the chance to explore beautiful locations in St. Petersburg. The company caters to tourists from all walks of life and is happy to work within your budget. White Night Travel’s major goal is to give you a different yet authentic Russian experience of a lifetime.

White Nights Travel Best Russia Tour Packages

There are plenty of options you can choose from with White Nights Travel’s tour packages.

The Walking Tour with Hermitage is one of the most popular programs the company offers in St. Petersburg. During the trip, you will discover various art galleries, museums, and parks, and in the evening, you will walk to the city center for vodka tasting and street food.

Do not miss out on the world-class five-hour Russia Golden Tour that will provide an opportunity to walk to Catherine Palace, Amber Room, and Church of the Spilled Blood.

The Jewish Heritage Tour combines a boat ride tour and the Grans Choral Synagogue tour, which offers you a fantastic opportunity to learn Jewish history in Russia with an English-speaking guide.

White Nights Travel Reviews

Their personalized service and attention to detail has led White Nights Travel to become one of the best tour operators in Russia. With over 650 reviews on TripAdvisor, the company is ranked #10 of 670 Tours & Activities in St. Petersburg. A past customer wrote:

Maria was absolutely fabulous showing our group of 8 the beautiful sights of St. Petersburg. She was so good at moving us thru crowds, her English is spectacular… Debra D

Read all reviews of White Nights Travel on TripAdvisor .

Dive into the rich history and culture of Greece. Join one of the 10 Best Greece Tour Operators , ensuring an immersive and authentic experience.

The best time to visit Russia is during the months of May to September. Although Russia is the largest country and weather can vary vastly, the popular cities and locations in Russia will be experiencing a warm weather and long, sunny days during this time.

You can expect to spend around $60 – $80 for a solo traveler staying at a decently rated hotel. This price will cover food, transportation and other fees. For a more luxurious vacation, you will be spending anywhere from $150 – $250.

Russia has a lot of specialties attached to it. From ballet and theatre to vodka and Russian culture, there is a lot to expect. Famous landmarks include Lake Baikal, The Red Square, The Hermitage and Moscow Metro System.

Being the largest country on the planet, there is definitely a lot of area to cover in Russia. However, most of Russia is barren and uninhabitable. For popular tourist destinations, 2 weeks should be enough for a majestic experience of Russian culture, nature and food.

The most iconic Russian dishes include the Blini (Russian pancakes), Pelmeni, Beef Stroganoff, Syrniki, Kasha (porridge), Borscht and Okroshka. Russia is also famous for their world-renowned vodka.

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The epicenter of modern Russia, Moscow booms with shiny new skyscrapers, the bulbous onion domes of the tsars and politically-rich Red Square. Explore the metropolis with a tourHQ guide.

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Marina Spasskaya

Hi there! My name is Marina and I'm a licensed Moscow city guide.Moscow is like ...

Greetings from Saint Petersburg. This is your private tour guide Ali in Saint Petersburg. I was ...

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Dear friends,My name is Maria, I am a licensed guide about Moscow. Being a native Muscovite I have ...

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My name is Ashraf ...I'm graduated from faculty of tourism and hotel guidance department, in Egypt ...

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My name is Hengameh Ghanavati. Im a licenced international tour guide since 2014 and I have ...

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The sprawling, mind-boggling metropolis of Russian Moscow has long been one of the theatrical stages on which the great dramas of Europe and Asia have been played out in grand style. Burned by Napoleon in 1812, immortalised by Tolstoy, utilised by the Bolsheviks and championed as a bastion of heroic defiance by the post-war communists, it’s almost hard to believe just how defining the historical events that found their home on Moscow’s streets have been. Moscow tour guides will easily be able to mark the major must-see landmarks on the map, from the onion-domed orthodox Saint Basil's Cathedral, to the political powerhouse of Red Square just next door, while others will be quick to recommend a ride on Moscow’s famous subterranean metro system, or a visit to the UNESCO-attested Novodevichy Convent on the city’s southern side. But Moscow is a city also in the throes of a cultural wrangling between the old and the new. Creative energies abound here: Boho bars and pumping super clubs now occupy the iconic mega structures of the old USSR; high-fashion outlets, trendy shopping malls and luxurious residential districts stand as testimony to a city that’s now the undisputed playground of the world’s super-rich, while sprawling modern art museums dominate the cultural offering of the downtown districts north of the Moskva River.

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GST on Travel Agents and Tour Operator Services

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My GST Office Tour|Govt Quarter Tour|CGL 2023 Motivation|CGL Best Post|GST Inspector Office
GST charged by ECO in case of BUS OPERATOR SERVICE {Learning GST Practically
Tour Operator & Transportation of Goods Exemptions under GST
How to be become Tour Operator
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GST on Tour Operator Services
Come the new idea of businesses, come more challenges with more complexity and opportunity. With this article an effort is made to descript the Services of Tour Operator under the aegis of Indian GST Laws. As per Heading 9985 of GST Tariff Act, 2017, The rate of GST would be 5% (2.5% CGST+2.5% SGST) provided following conditions are met, 1.
GST on Tours and Travels: HSN Code and GST Rate on Travel Agents Services
GST on tours and travels with HSN code. Under Heading 9985 of the GST Tariff Act, the applicable GST rate for tours and travel services is 5% if the following conditions are met. The tour operator providing the services will not be eligible for ITC on services like hotels, air tickets, etc. However, ITC can be claimed on tour operator services ...
Travel Agent and Tour Operator Services: GST
1. Inbound Tour: India Tour for Foreign travelers. If the customer is charged on a principal basis for the inbound tour, 5% GST will be charged without benefit to claim ITC. If the customer is charged on a commission basis for the inbound tour, then 18% GST will be charged with the benefit of claiming ITC. 2.
GST on Travel Agents and Tour Operator Services
GST on the Sale of Tour Packages. There is 5% GST on tour operator services or company, without the benefit of ITC. 5% GST will be paid on the gross commission/fee charged from the customer. From GST perspective, the tour packages can be divided into the following two categories: 1. Inbound Tour - tour of India for foreigner travelers
GST Of Travel Agents and Tour Operator Services
Tour operator services. 998555. Other travel arrangements and related services. 998559. ... The GST for travel agents and tour operators in India continues to be an ideal system of taxation which considers every intricacy of the trade and provides suitable options for taxation.
GST on Travel Agents and Tour Operator Services
GST on Travel Agents and Tour Operator Services: The travel and Tourism sector holds great strategic importance in the Indian economy, providing several socio-economic benefits. Apart from providing employment, income, foreign exchange for the country, the trade in the tourism sector has an economically positive impact on other associated industries such as food manufacturing, services ...
GST on Tour Operator Services
No input tax credit on services like hotels, air tickets etc. will be available to the entity. However, Input Tax Credit may be taken on the tour operator services procured from another tour operator. On the other hand, the entity may charge GST at the rate of 18% (9% CGST+9% SGST) on the total amount. In that case, the entity will be eligible ...
GST on Tour Operator & Travel Agents
5% GST on tour operator services without ITC. 5% GST on gross commission/fee charged from the customer. GST on inbound tour fees charged on Principal basis at 5% without ITC. GST on inbound tour fees charged on Commission basis at 18% with ITC. GST on outbound tour packages being offered to a person based in India charged at the location of ...
GST Of Travel Agents and Tour Operator Services
Tour operator services. 998555. Other travel arrangements and related services. 998559. Travel insurance & freight insurance services. 997136. Tourist Guide Service . ... The GST for travel agents and tour operators in India continues to be an ideal system of taxation which considers every intricacy of the trade and provides suitable options ...
GST Rate on Travel Agents & Tour Operator Services in India
GST on the Sale of Tour Packages. There is 5% GST on tour operator services or company, without the benefit of ITC. 5% GST will be paid on the gross commission/fee charged from the customer. From GST perspective, the tour packages can be divided into the following two categories: 1.
GST On Travel Agents and Tour Operators
GST rate is mainly enabled with the 18% on this Commission. Tour Operator 5%. Agent model 18%. Hotel Sales @18% and 18% GST for availing the input credits. Check on the GST on Travel agents which would mainly give you the complete option for more number of aspects.
PDF Tour Operators Changes vide 47th GST Council meeting and way forward CA
tour operator10 and explanatory notes provided as reference for classification of tour operator services. Such additional condition is imposed through the rate notification 11/2017-C.T.(R) as amended, which seems an additional burden, since in many cases the tour operator would be providing and charging only for accommodation and
GST for Travel agents or Tour operators
What is the rate of GST on tour operator's services? Tour operators can levy GST at the rate of 5% without claiming ITC or 18% with claiming ITC.
GST Alerts: Travel Agents & Tour Operators GST Overview
One such aspect that often gets overlooked is the application of GST rates on services provided by travel agents and tour operators. The Goods and Services Tax (GST) council has introduced specific rates for various types of expenses related to travel, which travelers need to be aware of to plan their budgets effectively. 1.
GST for Travel Agents and Transport Services
SAC Code for Travel Agents GST Rate for Travel Agents. As per the Schedule of GST Rates for services approved by the GST Council on 19th May 2017, the supply of tour operator services attracts 5% GST rate with no input tax credit.Also, services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India would continue to be exempt from GST, as it was ...
GST on Tours and Travels: HSN Code and GST Rate on Travel Agents Services
Acts while a tour operator with no ITC: A tour operator charges 5% GST to the customer on the amounts package but does not claim any ITC. Acts as a tour operator and claim ITC: The see operator charges 18% GST toward the customer on and total package and claims ITC. Although, it lives important on examine the place of supply rule when request ITC.
IRAS
Reverse Charge for Business-to-Business1 ("B2B") Imports: GST- registered businesses belonging in Singapore which are not entitled to full input tax claims must account for GST, as if they were the supplier, on imported services and low-value goods. Overseas Vendor Registration for Business-to-Consumer2 ("B2C") Supplies:
Top Moscow Tours & Vacations 2024/2025 [reviews & photos]
Moscow Tours & Travel Packages 2024/2025. Our 60 most popular Moscow trips. Compare tour itineraries from 45 tour companies. 308 reviews. 4.7/5 avg rating. Choose your trip style:
10 Best Russia Tour Operators 2024 [Unbiased & With Reviews]
Continue reading to explore the top 10 highly rated tour companies in Russia and their best travel packages. Get Free Quotes From 10 Best Russia Tour Operators. Providers. Reviews. Volgograd Sputnik Travel Company. Trip Advisor - 326 reviews. Flotilla Radisson Royal. Trip Advisor - 1,127 reviews. ExploRussia.
Russian Tour Agency
Grand Russia is DMC Travel Agency that offers full range of travel services in the entire country such as visa support letters (tourist invitation letter), transport services - from private vehicles up to 60 pax tourist coaches, professional tour guide assistance, domestic railway and airline tickets, hotel booking services, meals (of any preferences and rare food habits), tailor-made ...
Private Local Guides & Guided Tours in Moscow
Tell us your destination, date, and group size. Our team of travel experts and guides will design a tailored itinerary just for you. Enjoy your trip with peace of mind knowing everything is taken care of. The epicenter of modern Russia, Moscow booms with shiny new skyscrapers, the bulbous onion domes of the tsars and politically-rich Red Square.

GST on Tour Operator Services

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GST on Tours and Travels: HSN Code and GST Rate on Travel Agents Services

Scope of taxation on tours and travels

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Time of supply for GST on tours and travels

Place of supply for GST on tours and travels

GST on tours and travels with HSN code

Availability of ITC claims on tours and travels GST rate

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Travel Agent and Tour Operator Services: GST

Definition:

Chargeable Services of Travel Agents

• Visa Statutory Authorities:

• Visa Facilitation Centres:

GST on the Sale of Tour Packages

1. What is the full form of ITC?

2. What is the meaning of Input Tax Credit?

3. Can air travel agents avail for ITC?

4. Is GST applicable to the cab service providers like Ola, Uber, etc.?

5. Are Cab drivers liable to get registered and pay GST?

6. What if I want to avoid claiming ITC? How much GST do I have to pay?

7. What is SAC? And what is the meaning of it?

8. Why is the SAC code used?

9. Why is it necessary to know the place of supply of the Agent?

10. What is the complete form of the HSN Code?

11. What is the difference between the HSN and SAC codes?

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GST on Tour Operator Services

GST on Tour Operator & Travel Agents

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