GST for Travel Agents and Transport Services

GST rate for all services and goods has been notified by the GST Council. GST Council fixed rates for all goods and services in five different slabs namely, 0%, 5%, 12%, 18% and 28%. GST portal was made live on 25th June 2017, and

GST registration has been opened. GST return filing shall commence from July partly. GST is now all set to be rolled out from 1st July 2017. Hence, it is important for all business owners to adopt GST invoice formats, classify their services under appropriate HSN or SAC code and begin charging the correct GST rate for the goods or service. This article details GST on travel agents and GST on Transport Services.

SAC Code for Services

All services supplied by a taxable person under GST must be classified under SAC Code. SAC code stands for Service Accounting Codes, a system of codes and classification created under the Service Tax Act and Rules to classify services supplied in India. If goods are supplied by a taxable person under GST, then the goods must be classified under the HSN code. HSN code stands for Harmonised System Nomenclature, an international system used for classifying goods in international trade.

SAC Code for Travel Agent Services

The following two infographics provide the SAC code for travel agent services and transport services.

SAC Code for Travel Agents

GST Rate for Travel Agents

As per the Schedule of GST Rates for services approved by the GST Council on 19th May 2017, the supply of tour operator services attracts 5% GST rate with no

input tax credit. Also, services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India would continue to be exempt from GST, as it was exempt from service tax. Know more about GST rates applicable for hotels and restaurants.

GST Rate for Transport Services

The following types of transport services attract 5% GST:

Transport of goods by rail
Services of goods transport agency (GTA) in relation to transportation of goods [other than used household goods for personal use]
Services of goods transport agency in relation to the transportation of used household goods for personal use.
Transport of passengers by rail (other than sleeper class)
Renting of a motor cab
Transport of passengers by air in economy class
Transport of passengers, by
- Air-conditioned contract/stage carriage other than a motor cab
- Radio taxi.
Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport

The following types of transport services attract 12% GST rate:

Transport of passengers by air in other than the economy class

1 for all goods and services.

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Frequently Asked Questions

Common questions about GST Rates and SAC Codes for Travel and Transport Services.

The GST rate for supply of tour operator services is 5% with no input tax credit. Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India continue to be exempt from GST, similar to the previous service tax regime.

SAC code stands for Service Accounting Codes, a system of codes and classification created under the Service Tax Act and Rules to classify services supplied in India. All services supplied by a taxable person under GST must be classified under the appropriate SAC code.

The transport of goods by rail attracts a 5% GST rate.

Services of goods transport agency (GTA) in relation to transportation of goods (other than used household goods for personal use) attract a 5% GST rate. However, services of GTA in relation to the transportation of used household goods for personal use attract a different rate.

Transport of passengers by air in economy class attracts a 5% GST rate.

Transport of passengers by air in other than the economy class, such as business or first class, attracts a higher GST rate of 12%.

HSN code stands for Harmonised System Nomenclature, an international system used for classifying goods in international trade. If goods are supplied by a taxable person under GST, then the goods must be classified under the appropriate HSN code.

The renting of a motor cab attracts a 5% GST rate.

Transport of passengers by air-conditioned contract/stage carriage other than a motor cab attracts a 5% GST rate.

Radio taxi services attract a 5% GST rate.