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Impact of GST on Travel & Tourism Business | An Expert Guide

Online Legal India LogoBy Noikata Published On 15 Dec 2020 Updated On 21 Apr 2021 Category GST

GST is an indirect tax that is levied on the supply of goods and services of different kinds. Following the enactment of the GST Act, 2017, the services provided by the travel agents or agencies come under the GST taxation regime. We should know about the rate of GST on travel agents and tour operator services.

A travel agency or Tour operator is a business entity that offers services related to planning a trip, booking travel tickets and accommodation, and managing trips/tours. The services include ticket booking for air/rail, hotel accommodation, cab or bus hire, and sightseeing, etc.

How is GST charged on Tour/Travel Operator?

Tour agencies provide services on behalf of Airline companies, hotels, cab/bus operators and get a commission/fee for the same. The GST is charged on the commission amount received by them.

The rates of GST for different services are:

  • GST on Airline Ticket Booking by Agents – 18%
  • GST on Tour Packages sold by Agencies – 5%
  • GST on Services like Visa, Passport, etc. by an Agent or Company – 18%
  • GST on Booking of Hotel/Cruise by Agent – 18%
  • GST on Commission of Railway Agents – 18%
  • GST on Rent-a-Cab Service – 5%

How to get GST Registration?

An applicant can apply to the Govt. portal to get a GST registration for his/her tourism business. But, the process there demands a lot of time and energy, and many times the application gets cancelled for a mistake done in the application process.

Thus, it is highly recommended to be in touch with the country's GST experts to complete the process and get the GST registration at the quickest of all.

How We Can Help You?

In Online Legal India™, you will get step by step online assistance from the experienced GST taxation panel to get GST Registration without any hassle. Most importantly, not only GST registration, we will provide a helping hand in filing the monthly, quarterly, and annual GST returns of your business as well. 

Be it GST compliance or any other formal business-related procedure like Company registration, Trademark registration, or Income Tax filing, Online Legal India™ is your singular solution platform where you get professional guidance from experts and the charges are unbelievably low!


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