Income Tax and GST on Domestic & International Travel in India

Introduction:

There are a lot of us who enjoy traveling, some of us prefer to travel domestically, while others prefer to travel abroad. However, before traveling, everyone plans their trip according to their convenience, but oftentimes they overlook other associated expenses like GST. This is because, as we all know, the GST department has introduced various rates for different types of travel-related expenses.

In this article, we will learn what are the compliance needs to follow, what are the procedures for travel agents, and what are the primary differences between tour operators and travel agents. We will also understand why there is a variation in the GST rate that they supply to consumers.

Definition and meaning of Travel Agent:

There are a lot of us who enjoy traveling, some of us prefer to travel domestically, while others prefer to travel abroad. However, before traveling, everyone plans their trip according to their convenience, but oftentimes they overlook other associated expenses like GST. This is because, as we all know, the GST department has introduced various rates for different types of travel-related expenses.

In this article, we will learn what are the compliance needs to follow, what are the procedures for travel agents, and what are the primary differences between tour operators and travel agents. We will also understand why there is a variation in the GST rate that they supply to consumers.

Difference between Tour operators vs. Travel agents:
  • A tour operator is a person or company that organizes vacations and vacation packages.
  • The tour operator creates the services
  • A tour operator guarantees that a tourist enjoys the vacation package they have booked.
  • Tour agents make sure they have a good time on their vacation.