IndiaFilingsIndiaFilings
GST

GST on Air Travel Agent and Tour Operators

Shushma

Expert

Published on: Aug 12, 2025

GST for Air Travel Agents

In simple terms, air travel agent can be said to be a person who is engaged in providing any service which is connected with the booking of passage for travel by air. In this article, we look at the provisions of GST for air travel agents in detail. Broadly, air travel agent derive following types of incomes:
  • Processing/service fee for booking of tickets for the customer;
  • Commission income from the airlines for booking of air tickets.

Value Of Supply Of Services

Rule 32 of the Central Goods and Service Tax Rules, 2017 deals with the value in case of certain supplies and as per rule 32 (3) of the said rules provides that the value of supply of service in case of air travel agent shall be deemed to be following:
  1. 5% of the basic fare in case of the domestic booking for travel by air; and
  2. 10% of the basic fare in case of an international booking for travel by air.
‘Basic fare’, as mentioned above, means that portion of air fare on which commission is paid by the air travel agent by the airline.

GST Rates for Air Travel Agent

1
Description of Income   Value on Which GST is Payable   Rate of GST  
Processing/service fee for booking of tickets for the customer   Invoice value   18%  
Commission income from the airlines for booking domestic air tickets   5% of basic fare     18%
Commission income from the airlines for booking international air tickets   10% of basic fare   18%  
 
Back to Learn