GST on Travel Agent — Commission, Tour Packages & Air Tickets
Updated: 3 June 2026 | CGST Act | SAC 9985
Travel agent commission/service fee: 18% GST. Inclusive tour packages: 5% GST (no ITC). Economy air tickets: 5% GST; business class: 12%. Convenience fee on OTA platforms like MakeMyTrip: 18% GST. Registration mandatory above ₹20L turnover.
5% GST
Inclusive tour packages (domestic) — 5% GST on total package with no Input Tax Credit available.
Travel agent commission on bookings: 18% GST. Air economy tickets: 5%. Business class: 12%. Hotel bookings: hotel's 12%/18%; agent's service fee: 18%.
Travel agent commission on bookings: 18% GST. Air economy tickets: 5%. Business class: 12%. Hotel bookings: hotel's 12%/18%; agent's service fee: 18%.
GST Rate Chart — Travel and Tourism Services
| Service Type | GST Rate | SAC | ITC |
|---|---|---|---|
| Travel agent commission / service fee | 18% | 9985 | Available |
| Inclusive domestic tour package | 5% | 9985 | Not available |
| Foreign tour package (Indian portion) | 5% | 9985 | Not available |
| Air ticket — economy class | 5% | 9964 | ITC available for business |
| Air ticket — business class | 12% | 9964 | ITC available for business |
| Helicopter services | 18% | 9964 | — |
| OTA convenience fee (MakeMyTrip etc.) | 18% | 9985 | ITC available if for business |
| Hotel booking commission (agent's portion) | 18% | 9985 | Available |
| Visa and passport services | 18% | 9985 | Available |
Frequently Asked Questions
What is the GST on a travel agent's commission?
Travel agent commission/service fee: 18% GST (SAC 9985 — travel arrangement and related services). This applies to: booking fees for flights, hotels, holidays charged by the agent. Air ticketing service fee: 18% GST. Hotel booking commission: 18% GST on the agent's margin/commission. Package tour markup: part of the overall package rate. Note: The airline ticket itself does not attract GST — only the service charge/convenience fee added by the travel agent or OTA (Cleartrip, MakeMyTrip) is subject to 18% GST.
What is the GST on tour packages?
Tour operator packages: Inclusive domestic tour package (accommodation + transport + sightseeing bundled): 5% GST on total package value (no ITC available on inputs). This is under the special tour operator notification. Foreign tour package: 5% GST on the value of services provided in India (Indian portion). If tour operator passes on services directly (hotel/airline booked separately, not bundled): each component taxed at its own rate (hotel 12/18%, airline NIL). Advantage of 5% composite: simpler billing. Disadvantage: no ITC on inputs like hotel bills, bus bookings, etc.
Is GST applicable on air tickets?
Air tickets: Economy class tickets: 5% GST (effective from February 2019). Business class tickets: 12% GST. Chartered aircraft: 18% GST. Helicopter services (non-scheduled): 18% GST. The GST is included in the total airfare shown at checkout. Airlines pay GST to government. ITC for businesses: companies buying business-class tickets for employees can claim ITC if it's for business purposes. Travel agents booking airline tickets: their service charge/convenience fee is separately 18% GST; the ticket value itself is airline's GST responsibility.
How does GST work for online travel agencies (OTAs) like MakeMyTrip?
OTA (Online Travel Agency) GST model: OTA earns commission/markup from airlines, hotels. GST on this commission: 18% GST. OTA typically shows a consolidated bill showing: ticket price (airline's GST included) + OTA convenience fee (18% GST). Hotel bookings via OTA: hotel pays GST on room tariff; OTA pays 18% GST on its commission margin. For package tours through OTA: 5% GST if they qualify as tour operator. ITC: OTA can claim ITC on inputs used for providing taxable services. Customers booking for business: can claim ITC on the 18% GST shown on OTA service fees if registered under GST.
Do travel agents need GST registration?
GST registration threshold for travel agents: Turnover > ₹20 lakh: mandatory GST registration. Interstate services (booking tours across states): registration required regardless of turnover. If commission income < ₹20L and only local services: no mandatory registration. Composition scheme: NOT eligible for travel agents (service providers above 50L cannot use composition; interstate operators cannot use it at all). TDS by clients: corporates paying tour operator > ₹30,000/transaction: TDS at 10% under Section 194J (professional services) or 2% under 194C (if contract for service). Input Tax Credit: available on GST-registered inputs (office rent, software, vehicles for tours).
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