--- title: "New GST Rate for Travel Agency 2026: 5% Rate on Travel" description: "New GST rate for travel agencies in 2026 is 5% on all tour packages and travel bookings. Simplify GST billing with Busy and apply the right rate every time." canonical: "https://busy.in/gst-rates/travel-agency/" author: "Susheel Kumar" published: "2025-05-19T16:27:30.000Z" category: "GST Rates" --- - The **gst on travel agency** services depends on the type of service provided. - Travel agents generally charge GST on their commission or service fee, while tour operator services have separate GST provisions. - Eligible tour operator services may attract **5% GST without ITC** under applicable GST rules. - Travel agents generally charge **18% GST on commission or service fees** for services such as ticket booking and reservation assistance. ITC availability depends on applicable GST conditions. - Rent-a-cab and other travel-related services may attract different GST rates depending on service classification and ITC conditions. - Travel agencies must comply with GST registration and filing requirements based on applicable GST provisions. # New GST Rate for Travel Agency Services in India With more people exploring domestic and international travel, the role of travel agencies has expanded—from booking flights and hotels to offering complete tour packages. But what about the tax side? If you’re running or using the services of a travel agency, understanding the **GST rate for travel agency services** is a must. This blog covers applicable GST rates, [**ITC**](https://busy.in/gst/input-tax-credit/) eligibility, and key compliance rules for the travel industry in India. ## Is GST Applicable to Travel Agencies? Yes. Travel agencies are taxable service providers under [**GST**](https://busy.in/gst/) . Whether you’re booking tickets, providing hotel bookings, or offering a full tour package, you must charge GST on your services. Most travel services fall under [**SAC Code**](https://busy.in/sac-codes/) 9985 – Support services for transportation and SAC Code 9983 – Other professional, technical and business services. ## **New GST Rate on Travel Agency Services in India** The applicable GST rates for common travel agency services after **22 Sep 2025** are compared below. No major GST rate changes have been introduced for these services. | Service Provided by Travel Agency | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) | ITC Allowed? | | --- | --- | --- | --- | | Tour packages (domestic or international) | 5% (No ITC, where applicable) | 5% (No ITC, where applicable) | No | | Airline ticket booking commission/service fee | 18% | 18% | Subject to applicable conditions | | Hotel booking commission/service fee | 18% | 18% | Subject to applicable conditions | | Travel planning and consultancy services | 18% | 18% | Subject to applicable conditions | | Rent-a-cab service | 5% or 18% depending on ITC conditions | 5% or 12% depending on ITC conditions | Depends on applicable conditions | **Note:** The old and new GST rates are the same because no specific GST rate revision has been introduced for these travel agency services after 22 Sep 2025. The applicable rate depends on the nature of service and ITC conditions. Live Demo Available Today ## Convert Travel Proposals to GST Invoices in One Click Trusted by 6,00,000+ Users 4.6 Google Rating ## Old GST Rate for Travel Agency Services in India ### (Old GST Rates – Applicable Until 21st September) | Service Provided by Travel Agency | GST Rate | ITC Allowed? | SAC Code | | --- | --- | --- | --- | | Tour packages (domestic or international) | 5% | No | 9985 | | Commission on airline ticket booking | 18% | Yes | 9985 | | Hotel booking on behalf of clients | 18% | Yes | 9985 | | Travel planning/consultancy | 18% | Yes | 9983 | | Rent-a-cab service (not owning vehicle) | 5% or 12% | Depends | 9966 | ## **GST on Tour Packages** If you offer eligible all-inclusive packages (transport, stay, sightseeing, and other components): - GST is generally charged at **5% on the total package value**. - ITC is not available under the **5% GST without ITC option** for inputs and input services used for such supplies. This helps keep packages affordable but limits credit availability for the agency. ## GST on Commission-Based Services If your agency earns commission on airline bookings, hotel bookings, or ticketing, then you must charge 18% GST on the commission—not the full booking value. In such cases, you can also [**claim ITC**](https://busy.in/gst/input-tax-credit/) on eligible business expenses. ## Input Tax Credit (ITC) Rules for Travel Agencies | Scenario | ITC Eligibility | | --- | --- | | Tour package billed under 5% GST without ITC option | ❌ Not allowed | | Commission/service fee services taxed at 18% GST | ✅ Allowed, subject to conditions | | Marketing, software, office rent, and other business expenses | ✅ Allowed, subject to conditions | Understanding the **gst rate for travel agency services** is essential for tour operators and agents to price services correctly and comply with GST requirements. **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## About the author **Susheel Kumar** I am a Chartered Accountant with over 20 years of experience and a finance content writer. I focus on educating people about finance and taxation. I have written many blog posts on finance, taxation, trading, and investment on the BUSY website. My goal is to increase financial understanding by making complex concepts easier to grasp and to support educational programs in India. ## Frequently asked questions ### What is the GST rate for travel agency services in India? - **5% GST without ITC** applies to eligible tour operator package services. - **18% GST** generally applies to travel agency services such as commission/service fees and consultancy services, with ITC available subject to applicable GST conditions. ### Is GST applicable on flight or hotel booking through agencies? Yes, travel agents generally charge **18% GST on their commission or service fee** for flight or hotel booking services. ### Can travel agents claim input tax credit? Travel agents opting for **5% GST without ITC** on eligible tour packages cannot claim ITC on inputs and input services used for those supplies. ITC availability for other taxable services depends on applicable GST conditions. ### What SAC code is used for travel agency services? Mostly **9985** (support services) and **9983** (consultancy/advisory). ### Is GST registration required for small travel agents? Yes, if their turnover exceeds **₹20 lakh**, or if they offer **interstate/online services**, GST registration is mandatory. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)