GST Impact on Tour Agent & Tour Operator

v Impact on output Pricing

• Inter state and Intra state supplies
• Supply Valuation – a major challenge especially in case of associated enterprises / Branches
•  FOC impacts to be factored in supply
• No specific Exemption expected

v Impact on Supply Chain Management

• Services amongst Branch taxable
• ISD to play a major role
• Debit / Credit notes may pose challenge
• Salary of supervisors / senior management handling supply across different states may pose a problem

v Impact On Place of Supply

•  Place of Supply shall usually be the location of recipient in case of B2B.
• Location of supply in case of sub contractors shall also influence many business decisions

v  Impact on Registrations

• Separate registrations in each state
• E Commerce transaction – special provisions

v Impact on Cash Flow

• Advances are taxable
• Vendor / Customer discounts to be examined for tax impacts
• Impact on tax in case of provisioning by customers

v Input Tax Credit

• Credit availability subjected to online filing by supplier
• Credit of State GST restricted in certain cases
• Credit of your output GST of Catering not available to purchaser when purchased for employees

Click here more details