Tour Package Booking 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.

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998552 SAC Code GST Rate

Review old and new GST rates for Tour Package Booking under 998552 SAC Code.

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.

SAC Code

998552

Description

Reservation services for accommodation, cruises and package tours

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Reservation and booking services for accommodation, cruises and package tours, including agents' commission, are taxed at 18% with input tax credit. A tour operator billing the full package price falls under the separate tour-operator entry (998555) at 5%. Source: Notification 11/2017-Central Tax (Rate), S. No. 23(i) and 23(iii).

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.

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Practical Classification Guidance

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.

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Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.