New GST for Tours and Travel Services in India
- The gst on tours and travels depends on the type of travel service provided. Tour operator services may attract 5% GST without ITC subject to applicable conditions.
- The travel gst rate varies for different services such as tour packages, travel agent services, accommodation bookings, and transportation.
- Travel agents providing booking services generally charge GST on their applicable commission or service fee.
- GST treatment of the underlying ticket or accommodation depends on the nature of supply.
- Car rental and passenger transport services may attract different GST rates depending on the service classification and applicable ITC conditions.
- Travel businesses must comply with GST registration and filing requirements based on applicable GST provisions.
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.
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New GST Rate on Tours & Travel Services in India
The revised GST rates applicable from 22 Sep 2025 for common tours and travel services are provided below. GST treatment depends on the type of service, applicable SAC classification, and ITC conditions.
| Service Type | SAC Code | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) |
|---|---|---|---|
| Domestic tour packages (all-inclusive) | 9985 | 5% (No ITC) | 5% (No ITC) |
| International tour packages | 9985 | 5% (No ITC), where applicable | 5% (No ITC), where applicable |
| Hotel booking services (agent commission/service fee) | Applicable SAC based on service classification | 18% | 18% |
| Air ticket booking services (agent commission/service fee) | Applicable SAC based on service classification | 18% | 18% |
| Car rental with driver | 9966 | 5% (restricted ITC) or 18% (with ITC) | 5% (restricted ITC) or 12% (with ITC) |
Service Type
SAC Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Service Type
SAC Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Service Type
SAC Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Service Type
SAC Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Service Type
SAC Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Notes:
- “Specified premises” catering and hotel supplies remain subject to the applicable GST rate with ITC benefits. Other hotel accommodation supplies within the applicable value limits may have concessional GST treatment without ITC.
- For air travel agents, GST applies on the applicable commission value as per special valuation provisions. Airlines’ own ticket GST follows passenger transport service rules.
GST Applicability on Tour and Travel Services
All tour operators, travel agents, and agencies providing services like:
- Holiday packages
- Sightseeing tours
- Hotel and flight bookings
- Car rentals with a driver
are required to register under GST if their turnover exceeds ₹20 lakhs (₹10 lakhs for special category states).
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GST for Tour Packages: Domestic vs International
Domestic Tour Packages:
- GST @ 5% on the total package value
- No ITC allowed (as per Rule 32 of CGST Rules)
- Applies to packages that include stay, transport, food, and activities
International Tour Packages:
- GST treatment depends on the nature of the tour operator service and applicable GST provisions.
- Services involving travel outside India are subject to applicable place-of-supply and GST rules.
Billing and Invoicing for Tour Operators
Tour operators should:
- Mention the applicable SAC code 9985 on invoices.
- Charge 5% GST without ITC for eligible tour operator services under the applicable scheme.
- Opt for 18% GST with ITC where applicable as per GST provisions.
- File regular GST returns such as GSTR-1 and GSTR-3B.
- Maintain a clear breakup of package components for transparency.
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GST on Air and Hotel Bookings
For travel agents acting as intermediaries:
- GST is generally charged at 18% on the applicable commission or service fee.
- The airline or hotel provider charges GST separately on the underlying service, wherever applicable.
- Travel agents should charge GST on their own taxable service value, such as commission or convenience fees.
Input Tax Credit (ITC) Rules
| Item | ITC Allowed? |
|---|---|
| Hotel, travel, and dining costs included in tour packages | ❌ No, when the tour operator opts for 5% GST without ITC |
| Office rent, equipment, and advertising expenses | ✅ Yes, subject to applicable GST conditions |
| Eligible input services used for taxable business supplies | ✅ Yes, subject to applicable GST conditions |
Item
ITC Allowed?
Item
ITC Allowed?
Item
ITC Allowed?
Conclusion
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 .
