Tuesday, August 29, 2017

Travel agents can take input tax credit on ticket sales: Air India

National carrier Air India has told travel agents that they can take the input tax credit with respect to air tickets sold by them under the GST.

The facility will be in place for travel agents for one month starting from September 1 as steps are expected to be mutually decided upon by the civil aviation ministry and the airline industry in the coming months.

With the implementation of the Goods and Services Tax (GST), there is ambiguity on whether a travel agent can take input tax credit.

Travel agents will be construed as a principal customer for Air India whereby they can take input credit of GST charged by the airline. As a result, agents can raise an invoice to their customers for passenger transport service by air, according to a communication from the airline.

In the communication sent out last week, Air India said there is ambiguity in the GST on treatment of travel agents.
29/08/17 PTI/moneycontrol