Travel Agency Services

November 5, 2016   admin  GST Wise Implications
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  • Impact on Output Pricing

  • Inter state and Intra state supplies
  • Supply Valuation – a major challenge especially in case of associated enterprises / Branches
  • FOC impacts to be factored in supply
  • No specific Exemption expected

  • Impact on Supply Chain Management

  • Services amongst Branch taxable
  • ISD to play a major role
  • Debit / Credit notes may pose challenge
  • Salary of supervisors / senior management handling supply across different states may pose a problem

  • Impact On Place of Supply

  • Place of Supply shall usually be the location of recipient in case of B2B.
  • Location of supply in case of sub contractors shall also influence many business decisions

  • Impact on Registrations

  • Separate registrations in each state
  • E Commerce transaction – special provisions

  • Impact on Cash Flow

  • Advances are taxable
  • Vendor / Customer discounts to be examined for tax impacts
  • Impact on tax in case of provisioning by customers

  • Input Tax Credit

  • Credit availability subjected to online filing by supplier
  • Credit of State GST restricted in certain cases
  • Credit of your output GST of Catering not available to purchaser when purchased for employees


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3 thoughts on “Travel Agency Services”

    1. GST on tourist guide services @ 5%

      Please Note : The above opinion is a prima facie opinion and shouldn’t be constitute as a professional opinion.

  1. We Book services and Hotels from Supplier outside India do we pay GST on purchased paid here in India

    If supplier raises his invoicce for $1000 how i calculate gst and pay and at what rate and can i takeiTC of same

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