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Question ID : 34817

Travel Agents

One of our clients is engaged in travel business who books air tickets/bus tickets/ railway tickets and also books hotel on behalf of customers. the client is receiving commission from airlines / other agents and in some cases also receives mark up from customers. so in above, client is charging GST @18% on commission received from airlines and also on mark up from customers in bookings of flight/bus/ railway. client also books hotel for customers in which he directly books hotel online and issues invoice in the name of customers and he sales the hotel accommodation to customer after adding the mark up. so respected experts what would be the % of GST would apply in the mark up. - whether 5% to be levied on mark up without ITC or - 18% to be levied on mark up or GST would be levied on entire amount? (if it is so then there would be double taxation as agent won't be getting any GST and also agent is raising invoice directly in the name of customers only) Kindly help me into above matter as soon as possible

Posted by hemang savjani on Sep 25, 2018

Filed Under GST