Tour Package Booking Services Under SAC Code 998552
Tour package booking services cover arranging hotel stays, holiday packages, cruises and other travel experiences for individuals, families and corporate groups. Travel agents and tour operators design itineraries, bundle transport and stay options and charge a service margin on the total package value. Under GST, these activities are generally classified under SAC 998552 and the GST rate under this code directly affects the final price of the tour for the customer.
Tour Package Booking Services GST Rate for SAC Code 998552
SAC 998552 relates to reservation services for accommodation, cruises and package tours. Under the current GST framework, tour operators typically have 2 main options on tax treatment. A concessional 5% rate without input tax credit applies on the gross tour value where conditions are satisfied, while an 18% rate with full input tax credit applies in other business models, especially where commission or service fee structures are used. After the September 2025 rate changes, these 2 broad options continue within the revised 5% and 18% slabs.
The table below highlights the latest GST rate notified for SAC code 998552.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998552 | Reservation services for accommodation, cruises and package tours | 5% without ITC or 18% with ITC | 5% without ITC or 18% with ITC | Tour package entries under this code allow a concessional 5% on gross tour value without ITC, subject to conditions, while the same SAC is also used for booking commissions etc. that are taxed at 18% with ITC. Both options continue under the new slab structure, so sheet should reflect both rates. |
When invoicing customers, tour operators should mention SAC 998552 and clearly decide whether the package is being taxed at 5% without ITC or at 18% with ITC, based on their business model and the latest GST notifications. The chosen rate should be applied consistently across invoices, books and GST returns so that there is no mismatch between output tax, input credit claims and the tour operator conditions laid down in the law.
Explore Other SAC Codes Under 9985
Tour package booking under SAC 998552 sits within the broader 9985 support services heading, specifically in the group that covers travel arrangement, tour operator and related services. Other SAC codes in this family deal with transport reservations, event ticket bookings and other travel related support activities.
These are the main related six-digit SAC codes under parent 9985 that cover different types of travel, tour and accommodation support services offered by agents and operators.
In day to day work, travel businesses should use SAC 998552 for tour packages and accommodation reservations and use other codes under 9985 for activities like pure transport reservations or event ticket booking. Correct tagging of each service with the right SAC and GST rate helps avoid overlap between codes and gives a clean picture of different income streams in GST returns.
Conclusion
Tour package booking services falling under SAC 998552 are central to the travel and hospitality sector, because they combine stay, transport and experiences into one offering. Depending on the model, GST may apply at 5% without ITC or at 18% with ITC after the September 2025 changes. Carefully choosing the correct option, using the right SAC on all invoices and keeping proper records of package components together make GST compliance smoother for tour operators and their customers.
Important Disclaimer
The entire content on this page has been arranged to the best of the author's understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.