Tourism is one of India’s fastest-growing sectors, offering everything from luxury holiday packages to local sightseeing tours. If you run a travel business or book travel services, understanding the gst for tours and travels is key to pricing and compliance.
All tour operators, travel agents, and agencies providing services like:
are required to register under GST if their turnover exceeds ₹20 lakhs (₹10 lakhs for special category states).
Service Type | SAC Code | GST Rate |
---|---|---|
Domestic tour packages (all-inclusive) | 9985 | 5% (No ITC) |
International tour packages | 9985 | 5% (No ITC) |
Hotel bookings (on behalf of customer) | 9963 | 18% |
Air ticket booking (commission-based) | 9985 | 18% |
Car rental with driver | 9966 | 5% / 12% |
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Domestic Tour Packages:
International Tour Packages:
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Item | ITC Allowed? |
---|---|
Hotel, travel, and dining costs for package | ❌ No (if under 5%) |
Office rent, equipment, ads | ✅ Yes (if GST @18%) |
Services resold without bundling | ✅ Yes |
Whether you’re planning a trip or running a travel agency, understanding the GST for tours and travels helps with pricing transparency and ensures your business remains GST-compliant.