Value of Supply for Air Travel Agent


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Summary of Value of Supply for Air Travel Agent: Rule 32 of CGST Rule, 2017

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.

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 Service In Relation to Booking of Air Tickets:

  • Domestic booking= 5% of basic fare.
  • International booking= 10% of basic fare.

Basic Fare Means: Part of the fair on which commission is normally paid to the Air Travel Agent by the Airline.

GST Rates for Air Travel Agent:

Description of IncomeValue on Which GST is PayableRate of GST
Processing/service fee for booking of tickets for the customerInvoice value18%
Commission income from the airlines for booking domestic air tickets5% of basic fare18%
Commission income from the airlines for booking international air tickets10% of basic fare18%
Extract from Rule 32 of CGST Rule, 2017

Rule 32 of CGST 2017: Determination of value in respect of certain supplies:

Notwithstanding anything contained in the provisions of this Chapter (i.e. Chapter-IV: Determination of Value of Supply), the value in respect of supplies specified below shall, at the option of the supplier, be determined in the manner provided hereinafter:

The value of the supply of services in relation to booking of tickets for travel by air provided by an air travel agent shall be deemed to be an amount calculated at the rate of five percent. of the basic fare in the case of domestic bookings, and at the rate of ten per cent. of the basic fare in the case of international bookings of passage for travel by air.

Explanation- For the purposes of this sub-rule, the expression “basic fare” means that part of the air fare on which commission is normally paid to the air travel agent by the airlines.


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