Tour Operator Services Under SAC Code 998555
Tour operator services under SAC code 998555 cover organised travel planning where a tour operator designs, markets and sells tour packages to customers. This may include transport, stay, sightseeing, meals and local experiences combined into a single package or as separate components billed together. Using SAC 998555 correctly ensures GST on tour packages, mark ups and service fees is calculated in line with current rules for the travel trade.
Tour Operator Services GST Rate for SAC Code 998555
Tour operator services are part of the Travel arrangement, tour operator and related services group within heading 9985. Under GST, such services have a special scheme where a concessional 5% rate without input tax credit may apply on the gross tour value, provided the conditions in the law are followed. In other business models, especially where commission or service fee structures are used, the standard 18% rate with ITC becomes relevant.
With the slab restructuring from 22 September 2025, these 2 broad treatments continue within the revised 5% and 18% structure. Tour operators need to decide whether they are operating under the concessional scheme without ITC or under the regular 18% regime with ITC and then apply that choice consistently in their invoices and GST returns.
The table below highlights the latest GST rate notified for SAC code 998555.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998555 | Tour operator services | 5% without ITC | 5% without ITC | There is a dedicated entry for tour operator services taxing the gross tour value at 5% where the provider fulfils the definition of a tour operator and does not claim ITC except on same line input services. Separate standalone service charges that do not qualify can be taxed at 18% under other lines, but typical full tour operation uses 5% without ITC. |
While billing clients, tour operators should charge GST on the taxable value of organised tour planning and package tour services according to the model they follow and show the rate and tax clearly. Proper documentation of package components, margins and tax treatment helps both the operator and the customer justify input tax credit positions and avoid disputes during any departmental check.
Explore Other SAC Codes Under 9985
SAC 998555 is closely linked with other SAC codes under heading 9985 that deal with travel reservations, hotel bookings and tourism promotion services. Together, these codes cover the full chain from marketing a destination to booking travel, stay and experiences for travellers.
Below is a list of related six-digit SAC codes under 9985.
In practical use, SAC 998555 should be selected when a business is acting as a tour operator providing organised tour services. If the activity is limited to ticket booking or hotel reservation, the more specific reservation codes within 9985 should be used. Clear separation of activities under the right SAC codes helps maintain accurate GST reporting and makes it easier to explain income streams during audits.
Conclusion
SAC 998555 gives a distinct place to tour operator services within the GST system. For travel agencies and tour operators, using this code correctly and choosing the right rate option between 5% without ITC and 18% with ITC is crucial. Consistent classification, clear invoicing and regular review of GST notifications together make compliance smoother and protect margins in a competitive travel market.
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.