Gst For Tour Operators

Om Goenka
watch_later 3 years, 3 months ago

We understand that gst rate for tour operators is 5% with no input credit (ITC). My query is as under:

If we book any package through online sites, which normally operate from outside India & hence do not charge any Indian Tax &, then sale the same to Indian client for going abroad. What is the GST implication for this transaction.

Will this attract any RCM on purchase cost & at what rate.?

If so, will this RCM be adjustable against the GST liability on sale, which should be @5% on  sale value. 

Please help us in the matter. 

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1 Answer

Pulkit Sharma watch_later 3 years, 3 months ago

RCM on import of service comes under RCM if, Taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory other than non-assessee online recipient (OIDAR).

In you case service provider is located out of India. But another condition is received by a person located in taxable territory.

You are also located in taxable territory.

Now last point to check is Service are received in India or not.

To check this we need to refer to place of supply in case of import of services.

Referring to place of supply in case of imported services, tour operator services are attached to physical location and hence the location of physical place shall be considered for taxation purpose.

In your and in my opinion you do not have to charge tax under RCM.

Please refer Place of supply definition as per IGST Act, 2017.


  • chatComments
    If RCM is at all chargeable, whether the same is adjustable against GST on sale of Tour services to Indian client. - Om Goenka
    No it cannot be availed. - Pulkit Sharma
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