In serial
number 23, In Notification number 11/2017 dated 28th Jun 17, There
were two heading notified
i) Tour
operator services (See the definition of Tour operator services) Central Tax
rate was notified at 2.5% (Thus, making GST rate of 5%)
(This
charging 5% on invoice value option has 2 conditions)
1. Provided that credit of input tax
charged on goods and services used in supplying the service has not been taken
AND
2. Bill indicates that it is
inclusive of charges of accommodation and transportation required for such a
tour and the amount charged in the bill is the gross amount charged for such a tour
including the charges of accommodation and transportation required for such a
tour.
ii) Anything other than above Central Tax Rate was 9%.
However for category (i) the first condition of
restricting Input Tax Credit was modified by Notification number 1/2018 dated
25th Jan 18 as follows:-
“other
than the input tax credit of input service in the same line of business (i.e. tour
operator service procured from another tour operator)”
Thus, in nut shell
Tour operators will not claim
CGST, SGST and IGST charged by hotels, transporters, airlines, restaurants, travel
agents, guide, house boats, cruise ships, monument entry fees, joy rides
etc. as input tax credit.Note: If Tour operator avail any services from another Tour Operator as input service then ITC on such input services which is similar to his output can be taken.
The
expression “tour operator” is defined in entry No. 23 of notification No.
11/2017-Central Tax (Rate) dated 28.6.2017 as under:-
“Tour
operator” means any person engaged in the business of planning, scheduling,
organizing, arranging tours (which may include arrangements for accommodation,
sight-seeing or other similar services) by any mode of transport and includes
any person engaged in the business of operating tours”.
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.
1: Commission Earned @18%
Air Travel
Commission
As per
rule 32(3) of CGST Rules, the value of supply of services in relation to
booking of tickets for travel by air provided by an air travel agent,
shall be deemed to be an amount calculated at the rate of:
- 5%of the basic fare in the case of domestic bookings, and
- 10%of the basic fare in the case of international bookings
For the purposes of this sub-rule, the expression “basic
fare” means that part of the air fare on which commission is normally paid to
the air travel agent by the airline.
GST rate would be 18% on this Commission
2: Tour Operator @ 5% (With no input credit except for
bill from other tour operator)
3: True agent model @ 18% [ working on service fee]
4: Hotel Sales @18% As far as our understanding, for 18%
gst, one can avail input credit.
One can go for GST @18%, if you want to avail
input credit.
5. GST applicable for renting of motor vehicle shall
be @ 5% with no ITC or 12% with ITC.
6. Commission on Hotel Booking 5% with no ITC
If you have hotel bookings like things while doing a
travel package where amount is huge and can get GST bills too .claim it on 18%
and avail input credit ,which will be better than avail 5% on total amount which
can be a burden
5% GST will be payable on
the gross amount charged by the tour operator from the customer. This GST is
uniform for all services – package tours, hotel accommodation only etc
Following
are conditions for 5% GST rate :
- Input Tax Credit on goods and services used in supplying output services of tour operator has not been taken.
- The invoice / bill issued for supply of output service indicates that it is inclusive of charges of accommodation and transportation required for such a tour.
- Such narration can be given by way of footnote in the invoice.
Tour operators will not claim CGST, SGST and IGST
charged by hotels, transporters, airlines, restaurants, travel agents,
guide, house boats, cruise ships, monument entry fees, joy rides etc. as input
tax credit.
·
Note: If Tour
operator avail any services from another Tour Operator as input service
then ITC on such input services which is similar to his output can be taken.
·
SAC CODE: SAC Code
for tour operator is 9985.
Group 99855
(Having 5% rate og GST) - Travel arrangement, tour operator and related services
SAC
|
Service
Category
|
998551
|
Reservation
services for transportation
|
998552
|
Reservation
services for accommodation, cruises and package tours
|
998553
|
Reservation
services for convention centres, congress centres and exhibition halls
|
998554
|
Reservation
services for event tickets, cinema halls, entertainment and recreational
services and other reservation services
|
998555
|
Tour
operator services
|
998556
|
Tourist
guide services
|
998557
|
Tourism
promotion and visitor information services
|
998559
|
Other
travel arrangement and related services n.e.c
|
No Input Tax Credit is Allowed to Tour Operator
Service providers
Expenses included in Value of
Service :
Expenditure/costs incurred by service provider in
the course of providing taxable service, shall be treated as consideration for
the taxable service provided/to be provided and shall be included in the value
for the purpose of charging GST on the said service.
Expenses Excluded in Value of
Service :
The expenditure or costs incurred as a pure
agent of the recipient of service, shall be excluded from the value of the
taxable service if all the following conditions are satisfied, namely:-
- The service provider acts as a pure agent of the recipient of service when he makes payment to third party for the goods or services procured;
- The recipient of service receives and uses the goods or services so procured by the service provider in his capacity as pure agent of the recipient of service;
- The recipient of service is liable to make payment to the third party;
- The recipient of service authorizes the service provider to make payment on his behalf;
- The recipient of service knows that the goods and services for which payment has been made by the service provider shall be provided by third party.
- The payment made by the service provider on behalf of the recipient of service has been separately indicated in the invoice issued by the service provider to the recipient of service;
- The service provider recovers from the recipient of service only such amount as has been paid by him to the third party; and
- The goods or services procured by the service provider from the third party as a pure agent of the recipient of service are in addition to the services he provides on his own account.
9964
|
Transport
of passengers, with or without accompanied belongings, by –
(a) air, embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal; (b) non-air conditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire; or (c) stage carriage other than air-conditioned stage carriage. Explanation.- (a) “contract carriage” has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988); (b) “stage carriage” has the meaning assigned to it in clause (40) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) ; (c) “radio taxi” means a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS). |
Nil
|
28/06/2017
|
|
9964
|
Services
provided to the Central Government, by way of transport of passengers with or
without accompanied belongings, by air, embarking from or terminating at a regional
connectivity scheme airport, against consideration in the form of viability
gap funding: Provided that nothing contained in this entry shall apply on or
after the expiry of a period of 1 year from the date of commencement of
operations of the regional connectivity scheme airport as notified by the
Ministry of Civil Aviation.
|
Nil
|
28/06/2017
|
|
9964
|
Service
of transportation of passengers, with or without accompanied belongings, by—
(a) railways in a class other than— (i) first class; or (ii) an air-conditioned coach; (b) metro, monorail or tramway; (c) inland waterways; (d) public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and (e) metered cabs or auto rickshaws (including e-rickshaws). |
Nil
|
28/06/2017
|
|
9964
|
Transport
of passengers by rail in first class or air conditioned coaches
|
5 -
with ITC of input services
|
28/06/2017
|
|
9964
|
Transport
of passengers, with and without accompanied belongings by
(a) air conditioned contract carriage other than motorcab; (b) air conditioned stage carriage; (c) radio taxi Explanation.- (a) “contract carriage” has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988); (b) “stage carriage” has the meaning assigned to it in clause (40) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) ; (c) “radio taxi” means a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS). |
5 - No
ITC
|
28/06/2017
|
|
9964
|
Transport
of passengers by air in economy class
|
5 -
with ITC of input services
|
28/06/2017
|
|
9964
|
Transport
of passengers, by air, embarking from or terminating in a Regional
Connectivity Scheme Airport
|
5 -
with ITC of input services
|
28/06/2017
|
|
9964
|
Transport
of passengers by air in other than economy class.
|
12
|
28/06/2017
|
|
9964
|
Other
Passenger transport services
|
18
|
28/06/2017
|
|
9964
|
Transport
of passengers by motorcab(motor vehicle designed to Carry passengers inserted
w.e.f 13/10/2017)where the cost of fuel is included in the consideration
charged from the service recipient.
|
5% with
no ITC or 12% with ITC
|
28/06/2017
|
|
9964
|
Transport
of passengers by motorcab(motor vehicle designed to Carry passengers inserted
w.e.f 13/10/2017)where the cost of fuel is included in the consideration
charged from the service recipient.
|
12
|
22/08/2017
|
|
996411
|
Local
land transport services of passengers by railways, metro, monorail, bus,
tramway, autos, three wheelers, scooters and other motor vehicles
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996412
|
Taxi
services including radio taxi & other similar services;
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996413
|
Non-scheduled
local bus and coach charter services
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996414
|
Other
land transportation services of passengers.
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996415
|
Local
water transport services of passengers by ferries, cruises etc
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996416
|
Sightseeing
transportation services by rail, land, water & air
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996419
|
Other
local transportation services of passengers n.e.c.
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996421
|
Long-distance
transport services of passengers through Rail network by Railways, Metro etc
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996422
|
Long-distance
transport services of passengers through Road by Bus, Car, non-scheduled long
distance bus and coach services, stage carriage etc
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996423
|
Taxi
services including radio taxi & other similar services
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996424
|
Coastal
and transoceanic (overseas) water transport services of passengers by
Ferries, Cruise Ships etc
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996425
|
Domestic/International
Scheduled Air transport services of passengers
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996426
|
Domestic/international
non-scheduled air transport services of Passengers
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996427
|
Space
transport services of passengers
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
996429
|
Other
long-distance transportation services of passengers n.e.c.
|
18
|
28/06/2017
|
also
check SAC Code 99 or 9964
|
Very comprehensive and usefularticleSir
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