GST on travel is not complicated once you separate the three things the government cares about: what you are selling, how you are selling it, and where the customer is going.
The two rates you will use most
- 5% (without ITC) — when you sell a tour package as a principal.
- 18% (with ITC) — when you act as an agent and charge a service fee or commission.
SAC codes that matter
- 998551 — Reservation services for travel.
- 998552 — Reservation services for accommodation, cruises and packages.
- 998555 — Tour operator services.
TCS on foreign remittance (LRS)
For outbound packages above ₹7 lakh per PAN per financial year, you must collect 20% TCS. Below that threshold — 5%. TraWe flags the threshold automatically and adds the line to the invoice.
The fields auditors actually check
- GSTIN of supplier and (if B2B) recipient
- Place of supply — state code
- HSN/SAC on every line
- Reverse charge flag
- Signature or digital signature
#GST#Invoicing#Compliance