We are a Travel agent in Mumbai.
If we purchase a Europe package of Rs.10 lakhs for a family from our supplier in India
I will have to pay 5% gst to supplier on entire package ie. Total Rs.10,50,000/- including 5% GST, but when we sell this same package to our client will we have to charge GST from our passenger once again on the entier package amount ie.- 10,50,000/- + 25000 my service charge = 10,75,000/- x GST 5% ( Rs.53,750/- ) = Rs.1128750/- If this is correct then in that case Passenger is the sufferer because he ends up paying more then the double GSt. to goverment ie Rs.50,000/- charged by our supplier and once again we took GST on complete package including our service charges Rs.53,750/- Total dauble GST WILL BE COLLECTED FROM PASSENGER RS.50,000/- + 53,750/- = Rs.1,03,750/- only gst amount. is it correct please clarify.
What we personally feel that we should take GST of 18% on our service charges only and not on entier package amount which already includes GST. ie We should charge Rs.10,50,000/- ( this includes 5% GST charged by our supplier) + our service charges Rs.25,000/- + Gst on 25K ( 18% GST) Rs.4,500/- Total to collect from passenger Rs.10,79,500/-
Please revert immediately as one of our booking is on hold, we are not aware how much GST we should collect.
Thanks & Regards,
For Vintage tour & travels
Mr. Vinayak P. Korgaonkar
Partner ( Cell - 0976969044 ) Mumbai.