<p style="margin-left:48px; text-align:justify"><span style="font-size:14px"><strong><span style="color:black">This chapter explains implications of GST on tours and travel agent service.</span></strong></span></p>

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<p style="text-align:justify"><span style="font-size:14px"><strong>Air Travel Agents Service</strong></span></p>

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	<p><span style="font-size:14px"><span style="color:black">Air travel agent provide services of air ticket booking service, date change of ticket booking, cancellation of tickets etc.</span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">Following types of income is earn by an air travel agent.</span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">Commission from the Airline/ IATA agent for booking of air ticket. </span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">Income in the form of processing fees/ documentation charges etc. from the customer for whom he books the tickets. </span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">Hidden Markup added in the basic cost / taxes of tickets. </span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">Earn Segment payouts / PLB /commission / incentives/ from CRS/GDS [central reservation system / global distribution system like Amadeus, World Span, Galileo, for using their software for making booking in airline reservation system. </span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">So, the Air travel Agent shall be raising following types of invoices containing the name, address, GST Registration Numbers of the parties to whom the invoice is being issued and the place of supply as the provisions of section 12 and 13 of the IGST Act, of the above-mentioned income. </span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">To the Airline / IATA agents for commission for selling of Air tickets. </span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">To the customer for service charges / documentation charges / facilitation charges.</span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">Hidden markup is already included in the total amount charged to the customer but note of &ldquo;inclusive of all taxes&rdquo;must be mentioned on the face of invoice. </span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">To the Amadeus, World Span, Galileo for commission earned from them. </span></span></p>
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<p style="text-align:justify"><span style="font-size:14px"><strong>Taxability of income: </strong></span></p>

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	<p><span style="font-size:14px"><span style="color:black">&nbsp;18% GST applicable on Gross Commission income earned (income before TDS deduction) </span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">18% GST applicable on processing / documentation / facilitation charge which is mentioned on the face of invoice. </span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">Agent is liable @18% GST on the hidden markup earned from the client. </span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">Even if some of the airlines have not paid GST on commission, Travel Agent is still liable for GST on Gross commission received because airline deduct TDS on commission paid which reflects commission income on travel agents &ldquo;26 AS&rdquo; statement of income tax. </span></span></p>
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	<p><span style="font-size:14px"><span style="color:black">Some IATA agent paid commission by way if cut &amp; pay method, in that case commission invoice need to be issued on monthly basis to the IATA agent. After this invoice reflected in GSTR-2A, they will pay GST amount on that commission to us. </span></span></p>
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