GST Filing & Registration Service for Tour operators

One type of new business and startup in India is a tour operator. Business models have changed as technology has grown. The tax system has also become hard for them to understand. One thing that makes things hard for tour operators is GST Registration. So, if you want to start a tour operator business or already have one, there are some things you need to know. In this article, we’ll learn everything there is to know about GST Registration for tour operators.

What is the role of a tour operator? Who is a tour operator?

Most of the time, a tour operator is a business that offers a full tour package. In other words, they offer places to stay, food, tours, and a number of other similar services.

Also, tour operators are in charge of putting together full vacation packages both in the country and abroad.

In simple terms, a tour operator is a company that puts together travel packages for its customers based on what they want and what they need.

So, a company or person who plans and/or advertises trips that include everything and works with suppliers to put together a package needs to get GST Registration if they are eligible. Most tour operators sell directly to customers or through travel agents, so according to the rules, they might need GST Registration. Also, these businesses are now a type of e-commerce with a website or a mobile app. In this case, they have to get GST Registration and fill out a GST Return.

Two Major Business Models of Tour Operators

Tour Operator who works to provide Tour Package: 

In this case, the tour operator takes care of the whole booking process, and his profit will be built into the total price. So, the Tour Operator becomes a service provider and gets services from a wide range of other businesses, like airlines, hotels, local taxi companies, cafes, and embassies that give out visas.

Tour Operator who works just as a pure agent:

The tour operator just makes things easier for travellers by helping them find and book different vendors based on their needs. So, the real traveller pays the final service provider directly, and the tour operator just charges the passenger for its part of the service.

GST Applicability on Tour Operator Business

Every tour operator who makes more than Rs. 20 lakhs in a fiscal year is required to get GST Registration. Also, the limit is Rs. 10 Lakhs for certain categories or states. In simple terms, travel agents in:

1. Arunachal Pradesh
2. Assam
3. Jammu & Kashmir
4. Manipur
5. Meghalaya
6. Mizoram
7. Nagaland
8. Sikkim
9. Tripura
10. Himachal Pradesh
11. Uttarakhand

If their annual sales are more than 10 Lakhs Rupees, they will have to register for GST and file a GST return.

But it’s important to keep in mind that the turnover threshold doesn’t always apply. For example, a person who makes taxable supplies across state lines. For example, a person who, as an operator or otherwise, provides taxable goods or services, or maybe even both, on behalf of another taxable person, like an air travel agency, must get GST Registration in India.

What is SAC Codes for Travel Agents for Outward supply?

GST Tax rates after GST Registration for tour operators

After GST, Tax Rates Here are the steps for tour operators to sign up.

First, if a Tour Operator is acting as an agent, it can only charge 18% GST on the total commission amount and then get reimbursed for other costs incurred while providing services.
As a tour operator, a taxpayer can do the same things: add 5% GST to the total price and get no Input Tax Credit.
But you can also charge 18% GST on the total value, file a GST return, and get an Input Tax Credit.

Contact Us for GST Filing & GST Registration

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See GST Filing Packages on https://www.gstsuvidhakendras.org/gstmonthlyfiling/

See GST Registration Packages on https://www.gstsuvidhakendras.org/gst-registration-service/

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