Navigating GST as a tour operator can feel like trekking through a regulatory jungle. But with the right strategy, even small businesses can stay compliant, optimize costs, and grow confidently. Here’s a simplified guide to help you choose the best GST approach for your tour operations.

 Two GST Paths for Tour Operators

Tour operators in India typically choose between two GST models:

1. Commission-Based Billing at 18% GST

• Charge 18% GST on your commission income.
• Eligible to claim Input Tax Credit (ITC) on:
  • Rent
  • Office expenses
  • Professional services
  • Lease line, telephone, etc.
• Hotel and ticket bookings qualify for ITC only if the place of supply and supplier location are in the same state.

2. 5% GST on Full Package (No ITC)

• If you’re a sub-agent under a principal tour operator charging 5%, you must also invoice at 5%.
• ITC is not available on:
  • Rent
  • Office expenses
  • Hotel/ticket bookings
• You can only claim ITC on the 5% commission portion, if applicable.

Acting as a Pure Agent: A Smarter Workaround

Want to avoid GST on hotel and ticket bookings? You can act as a pure agent for your customer:

• Sign a formal agreement stating you’re booking on their behalf.
• Make payments for hotels, tickets, etc. as their agent.
• Reimburse these costs separately—not included in your taxable supply.

This approach keeps your GST liability lean while maintaining transparency.

Why Bookkeeping Matters More Than Ever

Whether you choose 5% or 18%, accurate bookkeeping is non-negotiable:

• Helps during income tax scrutiny and audits.
• Clarifies GST input eligibility.
• Supports better business decisions and financial planning.

 Affordable Accounting for Small Tour Operators

Hiring a full-time accountant or investing in software may be out of reach for small businesses. That’s where we come in.

Accodeck offers flexible, pay-as-you-go accounting services:

• No fixed costs
• No software purchases
• No office setup required
• Backed by a team of experienced, GST-savvy professionals

Ready to Simplify Your GST Journey?

Whether you’re billing at 5% or 18%, acting as a pure agent, or just trying to stay audit-ready, Accodeck is here to support you. Let’s build clarity, compliance, and confidence—together.