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May 8, 2025

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GST rates and HSN code 9605 for Travel Sets

GST rate and HSN code 9605 for Travel Sets

Traveling is favored by all. Some people like to travel internally, and others prefer to travel abroad. Before traveling, everyone plans their trip secondhand at their convenience; however, sometimes, they ignore other related incidentals, such as GST rates on services by travel agents and tour operators. This is because we are familiar with the GST meeting, which has initiated rates for distinct sorts of incidentals pertinent to travel.

The blog focuses on what compliance is compulsory to follow, what the process is for travel agents, and the major differences between tour operators and travel agents. We shall learn about the reasons for the disparity in the GST rate with the SAC code that they supply before patrons.

Explanation of a Travel Agent

A travel agent organizes travel for conclusion clients (individuals, groups, corporations) on behalf of suppliers (hotels, airlines, vehicle rentals, cruise lines, trains, travel insurance, package tours). His pledge is to ease their patrons' holiday planning process and provide consultancy services and comprehensive travel packages.

An agent can be self-employed, work for an independent travel agency, or be an affiliate of a travel agency group. Agents frequently collect a 10 to 15% commission from lodgings and transportation companies, besides interest in handling trip bookings.

GST rates and HSN code for Travel Sets:

HSN Code	Description	Rate (%)	Effective Date	Rate Revision
9605	Travel Sets For Personal Toilet, Sewing Or Shoe Or Clothes Cleaning	18	01/07/2017	18%
960500	Travel Sets For Personal Toilet, Sewing Or Shoe Or Clothes Cleaning	18	1-Jul-2017	18%
96050010	Travel Sets For Personal Toilet, Sewing Or Shoe Or Clothes Cleaning - Travel Sets For Personal Toilet, Sewing Or Shoe Or Clothes Cleaning : For Personal Toilet	18	1-Jul-2017	18%
96050090	Travel Sets For Personal Toilet, Sewing Or Shoe Or Clothes Cleaning - Travel Sets For Personal Toilet, Sewing Or Shoe Or Clothes Cleaning : Other	18	1-Jul-2017	18%

‍Comparison B/W Tour Operators and Travel Agents

Threshold limit of GST registration for Tour Operators and Travel Agents:

Every tour operator with a turnover exceeding Rs. 20 lakhs in the earlier financial year should have the GST registration.

The maximum business is Rs. 10 lakhs for distinct categories or states.

Tour Operators in states:

They would register for GST and file a GST return if their annual turnover is more than Rs 10 lakh.

The business limit is not applied every time. For instance, when an individual executes an interstate assessable supply, an individual as an operator or else furnishes the goods or services or both levied to taxes on behalf of another taxable individual, such as an air travel agency, should obtain GST registration in India.

The Source of Supply Location

For example, when a hotel or cruise pays the agent if the hotel or cruise is situated in India, the sale shall be at the location of the hotel or cruise.

The POS of an agent's willpower signifies an agent's location if the hotel or cruise is positioned outside of India.

GST Rate Applies to Travel Agents

Travel agents need to levy 18% GST on their facility, but when the agent furnishes the air carriage services, the GST is levied under Rule 32 of the VGST Rule 2017.

Under CGST Rule 32(3), the value of the services yielded by an air travel agency in association with the booking of airline tickets will be obvious at the rate of

Domestic booking:- 5% of the basic fare

International booking:- 10% off the basic fare

GST levied to Air Travel Agent:

A Commission from Airline:

Domestic Air Ticket – GST @18% on 5% of Basic Fare

International Air Ticket – GST @ 18% on 10% of Basic Fare

B Service levied from clients:

GST is at the rate of 18% on service charges, in addition to other charges.

GST Rate and SAC Code on Travel Agents Services

Conclusion

The aforesaid account signifies that all the services provided to the customers via the travel agents are subject to taxes under the GST taxation system. This is because you might plan your upcoming vacation budget, and it is an obligation to ensure that you include the GST that your lightweight agent levies you for the services they furnish.

Suggested Read: Pencil HSN Code and GST Rate - 9606

FAQs

What is the HSN code for passenger travel?

HSN Code 996422: Long-distance transport services of customers through road by bus, car, non-scheduled long-distance bus and coach services, step carriage, etc.

What is the GST rate for tours and travel?

The GST on Tours and Travels contains varying rates influenced by input tax credits (ITC). Without ITC, a 5% GST is enforced, whereas through ITC, an 18% GST is applicable, impacting both travelers and tour operators. For more on the HSN code and GST pertinent to travel agents, continue reading.

What is the HSN number in GST?

HSN (Harmonised System of Nomenclature) codes are indispensable for Goods and Services Tax (GST) in India. They categorize goods based on their characteristics and facilitate uniform taxation. Understanding HSN codes guarantees accurate tax calculation and compliance with GST regulations.

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