New GST Rate for Travel Agency Services in India
- 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.
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 eligibility, and key compliance rules for the travel industry in India.
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Is GST Applicable to Travel Agencies?
Yes. Travel agencies are taxable service providers under 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 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 |
Service Provided by Travel Agency
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
ITC Allowed?
Service Provided by Travel Agency
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
ITC Allowed?
Service Provided by Travel Agency
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
ITC Allowed?
Service Provided by Travel Agency
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
ITC Allowed?
Service Provided by Travel Agency
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
ITC Allowed?
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.
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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 |
Service Provided by Travel Agency
GST Rate
ITC Allowed?
SAC Code
Service Provided by Travel Agency
GST Rate
ITC Allowed?
SAC Code
Service Provided by Travel Agency
GST Rate
ITC Allowed?
SAC Code
Service Provided by Travel Agency
GST Rate
ITC Allowed?
SAC Code
Service Provided by Travel Agency
GST Rate
ITC Allowed?
SAC Code
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 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 |
Scenario
ITC Eligibility
Scenario
ITC Eligibility
Scenario
ITC Eligibility
Understanding the gst rate for travel agency services is essential for tour operators and agents to price services correctly and comply with GST requirements.
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