GST on Tour Operator Services

GST on Tour Operator Services :-

World’s largest Democratic Nation, India joins in the league of GST (Single Taxation Regime) from 01.07.2017 and subsequently notified Tariff and non-tariff Notifications regarding various Goods and Services, erstwhile it was known to be Central Excise Tax on Manufacturing Goods and Service Tax against the services supplied or received. And Tour Operator service is considered as one of the ever widening scope of service ever since the advent of cheaper air communication and opening of luxurious hotels across the globe. So, in the following paragraphs various issues related to this Service will be dealt and will be continuously updated as soon as the Board of Central Goods and Services Tax, New Delhi updated.

Definition:- "Any person engaged in the business of planning, scheduling, organizing or arranging tours or packages (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 in a tourist vehicle  or a contract carriage by whatever name called, covered by a permit, other than a stage carriage permit, granted under the motor vehicles Act, 1988 ( 59 of 1988) or the rules made thereunder".

SAC Code (Service Accounting Code) : 998555

Liability of GST on Tour Operator Service : As per section 22 to 25, any person who is engaged in supply of goods or rendering of services or both will be liable to be registered under GST if,

1.   Aggregate turnover in a financial year of taxable supply of Goods or Services exceeds Rs. 20 Lakhs or,

2.   Aggregate turnover in a financial year of taxable supply of goods or services exceeds Rs. 10 lakhs if the person is located at North Eastern States of India (including Assam, Meghalaya, Manipur, Mizoram,Nagaland, Arunachal Pradesh, Tripura and Sikkim) and states of Himachal Pradesh, Uttarankhand and Jammu & Kashmir.

Rate of GST rate : 5% on full value

Eligibility of ITC (Input Tax Credit) : No ITC
For getting SAC Codes for Various Services CLICK HERE.