In short
| Item | What applies | Since | Good to know |
|---|---|---|---|
| Tour package (travel and stay in one price) | 5% with conditions, or 18% | 1 Jul 2017 | Credit on tours bought from other tour operators since 25 Jan 2018. |
| Foreign tourist, tour partly abroad | Share for days abroad exempt, up to 50% | 18 Jul 2022 | 12 hours or more counts as a day; less, as half a day. |
| TCS on overseas tour packages | 2%, no threshold | 1 Apr 2026 | Was 5% up to ₹10 lakh a year and 20% above. |
| Event management, hall hire without food | 18% | 1 Jul 2017 | No change found. |
| Banquet (food with the hall) | 5% (18% at specified premises) | 1 Oct 2019 | Was 18%. At 5%, no credit, except from 1 Nov 2026 on catering bought from other caterers, up to 5%. |
| Event tickets up to ₹500 | Exempt | 25 Jan 2018 | The limit was ₹250 before. |
| Concert tickets above ₹500 | 18% (our reading) | 1 Oct 2021 | Was 28%. |
| IPL-type match tickets | 40% | 22 Sep 2025 | Was 28%. Recognised sporting events: 18%. |
Current, upcoming and expired rules
Current is what applies today. Upcoming is notified and starts later. Expired shows what applied before, from which date to which date, for when an old invoice or a notice asks.
Rules as on 31 Oct 2026 (India time). A rule moves between the tabs on its own when its start or end date passes.
| Rule | Rate | Dates | Law and source |
|---|---|---|---|
| TCS on overseas tour packages: flat 2%Under the Income-tax Act 2025, TCS on an overseas tour package is 2% of the amount, with no threshold and no higher slab. | 2% | Since 1 Apr 2026 | Income-tax Act 2025 s.394(1) Table S.No. 8; Finance Act 2026 Checked against the textBudget speech 2026-27, para 103 |
| IPL-type sporting events, casinos and race clubs: 40%Tickets for sporting events like the IPL are taxed at 40%. Recognised sporting events are kept out of this entry. | 40%Code 999651 | Since 22 Sep 2025 | 15/2025-CT(Rate), S.No. 34(iiia) Checked against the textNotification 15/2025-CT(Rate) |
| Recognised sporting events above ₹500: 18%Tickets above ₹500 for events run by recognised sports bodies and national federations are taxed at 18%. Tickets up to ₹500 stay exempt. | 18%Code 999651 | Since 22 Sep 2025 | 15/2025-CT(Rate), Explanation to S.No. 34(iiia); residual S.No. 34(vi) Checked against the textNotification 15/2025-CT(Rate) |
| Foreign tourists on tours partly abroadWhen a tour operator sells a foreign tourist a tour partly in India and partly abroad, the share for the days outside India is exempt, up to 50% of the price. A stay of 12 hours or more counts as a day, and less than 12 hours as half a day. | Exempt shareCode 998555 | Since 18 Jul 2022 | 04/2022-CT(Rate), S.No. 52A of 12/2017-CT(Rate); 04/2022-IT(Rate), S.No. 54A of 9/2017-IT(Rate) Checked against the textNotification 04/2022-CT(Rate) |
| Concert tickets above ₹500: 18%'Entertainment events' were dropped from the 28% entry, so concert tickets above ₹500 fall in the general 18% entry.Our reading: Every entry that can cover a concert is now 18%. Some guides still quote 28% for concerts; check with your CA before you rely on 18%. | 18%Code 999621 | Since 1 Oct 2021 | 06/2021-CT(Rate), S.No. 34 of 11/2017 Checked against the textNotification 06/2021-CT(Rate) |
| Banquets: 5% without credit, outside specified premisesCatering with the venue is 5% without credit, unless at or by specified premises (hotels with rooms above ₹7,500), where it is 18% with credit. | 5% / 18%Code 996334 | 1 Oct 2019 – 31 Oct 2026 | 20/2019-CT(Rate) S.No. 7(v) Checked against the textNotification 20/2019-CT(Rate) |
| Tour packages at 5%, with credit on tours bought from other operatorsThe 5% rate continues on the same conditions, and a tour operator may now claim credit on tour-operator service bought from another tour operator. No other credit. Without the conditions the rate is 18%.Credit (ITC): Only on tours bought from other tour operators.For a cab operator: Cab hire, hotels and meals you buy for a 5% package carry no credit for you. Cab hire you sell to a tour operator is still your own cab service at 5% or 18%. | 5% (conditions) / 18%Code 998555 | Since 25 Jan 2018 | 1/2018-CT(Rate), S.No. 23(i) Checked against the textNotification 1/2018-CT(Rate) |
| Event tickets up to ₹500: exemptThe limit rose to ₹500 per ticket, and planetariums were added. | Exempt | Since 25 Jan 2018 | 2/2018-CT(Rate), substituting S.No. 81 of 12/2017 Checked against the textNotification 2/2018-CT(Rate) |
| Theme and water parks: 18%Admission to theme parks, water parks and places with joy rides or go-carting is taxed at 18%. | 18%Code 999691 | Since 25 Jan 2018 | 1/2018-CT(Rate); reworded by 06/2021-CT(Rate) Checked against the textNotification 1/2018-CT(Rate) |
| Event management, and hall hire without foodOrganising events, conventions and exhibitions, and renting a hall without food, are taxed at 18% with full credit. No change found since 2017.Credit (ITC): Full credit. | 18%Code 998596 | Since 1 Jul 2017 | 11/2017-CT(Rate) S.No. 23 (support services) and S.No. 16 (renting of premises) Checked against the textNotification 11/2017-CT(Rate) |
| Circus, classical and folk dance, theatre: 18%Tickets above the exemption limit for circus, Indian classical or folk dance, theatre and drama are taxed at 18%. | 18%Code 999621 | Since 1 Jul 2017 | 11/2017-CT(Rate) S.No. 34(i) Checked against the textNotification 11/2017-CT(Rate) |
| Tours wholly outside India for foreign tourists: exemptServices provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India are exempt from IGST (Nil). The entry covers only foreign tourists; it does not exempt a foreign tour sold to an Indian resident. | Nil | Since 1 Jul 2017 | Notification 9/2017-IT(Rate) S.No. 54 (Heading 9985) Checked against the textCBIC - Notification 9/2017-IT(Rate) dated 28.06.2017 (as issued)CBIC - Notification 04/2022-IT(Rate) dated 13.07.2022 |
Checked against the government text Official copy not yet online; matched across published copies The law is unclear; this is our reading
On a timeline
Each line is one rule; each bar is one period. Grey has ended, green applies today, amber starts later.
Who can claim GST credit
Input tax credit (ITC) is GST you paid on a purchase that you subtract from the GST you collect. Whether you get it depends on who you are and what you bought.
| Who | Buys | Can claim? | Condition |
|---|---|---|---|
| An event company | Cab hire used to deliver an event it bills for | Yes | Allowed when the hire is part of a taxable composite or mixed supply the company makes.CGST Act s.17(5)(b)(i) proviso |
| Tour operator on the 5% rate | Cab hire, hotel rooms and meals for its packages | No | The 5% tour-operator rate allows credit only on tour-operator service bought from another tour operator.11/2017-CT(Rate) S.No. 23(i), as amended by 1/2018-CT(Rate) |
| Tour operator on the 5% rate | A tour bought from another tour operator | Yes, since 25 Jan 2018 | Same-line credit, with no cap written in the entry. Before 25 Jan 2018 the 5% rate allowed no credit at all.1/2018-CT(Rate), S.No. 23(i) |
| Any employer | Holiday travel for staff (leave or home travel) | No | Travel benefits for employees on vacation are blocked, unless a law makes the employer provide them.CGST Act s.17(5)(b)(iii) |
| Any business | Meals or outdoor catering for staff or guests | No | Food and drink are blocked unless you sell the same kind of service (a caterer buying from a caterer) or a law makes you provide it.CGST Act s.17(5)(b)(i) |
| A business | Event management for its conference, launch or dealer meet | Yes | The event must be for the business. Food and drink inside the bill can stay blocked.CGST Act s.16, s.17(5)(b)(i) |
What courts and rulings have said
Judgments and advance rulings that explain a rule, including ones that pull in different directions. Weigh them by who gave them: a Supreme Court judgment binds every court in India; a High Court’s is followed by courts and tax officers in its State and is persuasive elsewhere; an advance ruling (AAR or AAAR) binds only the business that asked for it and its tax officer (section 103 of the CGST Act).
| Ruling | Question and answer | Weight |
|---|---|---|
| High CourtDharmendra M. Jani v. Union of India and others, with A.T.E. Enterprises Private Limited v. Union of India and othersBombay High Court, 18 Apr 2023Writ Petition No. 2031 of 2018 with Writ Petition (L) No. 639 of 2020 (2023:BHC-OS:3045-DB) | On the reference after the split: is IGST Act s.13(8)(b) (with s.8(2)) valid, and can it be used to charge CGST and state GST on an intermediary's services to foreign clients?Section 13(8)(b) and s.8(2) are legal, valid and constitutional, but only within the IGST Act. They cannot be used to levy tax on such services under the CGST and Maharashtra GST Acts.“confined in their operation to the provisions of IGST Act only and the same cannot be made applicable for levy of tax on services under the CGST and MGST Acts”IGST Act s.13(8)(b) (omitted by Finance Act 2026 w.e.f. 30-03-2026), s.8(2), s.2(13)Referral judgment of G.S. Kulkarni, J (copy hosted by LiveLaw)LiveLaw report (secondary)Taxmann on the final Division Bench order (secondary)Grant Thornton on Finance Act 2026 omitting s.13(8)(b) (secondary) | Rulings differAuthorities within the Bombay High Court's jurisdiction (Maharashtra, Goa, Dadra and Nagar Haveli and Daman and Diu); persuasive elsewhereA Division Bench then passed the final order on this answer. Conflicts with the Gujarat High Court in Material Recycling Association (2020). The law has since changed: the Finance Act 2026 (s.157) omitted s.13(8)(b) with effect from 30 Mar 2026, as CBIC's IGST s.13 page records; earlier periods stay under the old text. |
| High CourtDharmendra M. Jani v. Union of India and othersBombay High Court, 16 Jun 2021Writ Petition No. 2031 of 2018 | Is IGST Act s.13(8)(b), which places an intermediary's services at the intermediary's own location so that services to foreign clients are not exports, constitutional?The judges split. Justice Ujjal Bhuyan (pronounced 09-06-2021) held s.13(8)(b) ultra vires the IGST Act and unconstitutional; Justice Abhay Ahuja (pronounced 16-06-2021) upheld it. On 16-06-2021 the bench sent the matter to the Chief Justice for a third judge.“section 13(8)(b) of the Integrated Goods and Services Tax Act, 2017 is ultra vires the said Act besides being unconstitutional”IGST Act s.13(8)(b), s.2(13) (intermediary), s.2(6) (export of services), s.8(2)Both 2021 opinions (copy on itatonline)LiveLaw report on the split verdict (secondary) | OvertakenNot a decision of the court (split opinions); no binding effectOvertaken by the third judge's answer of 18 Apr 2023. Justice Bhuyan's view conflicts with the Gujarat High Court in Material Recycling Association (2020). |
| High CourtMaterial Recycling Association of India v. Union of India and 2 othersGujarat High Court, 24 Jul 2020R/Special Civil Application No. 13238 of 2018 with No. 13243 of 2018 | Is IGST Act s.13(8)(b), read with the definition of intermediary in s.2(13), ultra vires, so that an Indian intermediary paid in foreign exchange by a client abroad is exporting services?No. The provision is valid; an intermediary in India serving a client abroad is not exporting services even if it invoices abroad and is paid in foreign exchange. The court said the rule places the supply at the intermediary's location so that CGST and SGST are charged.“considering the place of supply in case of intermediary to be the location of supply of service is in order to levy CGST and SGST”IGST Act s.13(8)(b), s.2(13), s.2(6); Notif. 20/2019-IT(Rate) entry 12AA (noted by the court)Judgment PDF (copy hosted by LiveLaw)LiveLaw report (secondary) | Rulings differAuthorities in Gujarat; persuasive elsewhereNo appeal found. Conflicts with the Bombay High Court in Dharmendra M. Jani (2023) on whether s.13(8)(b) can found a CGST and SGST levy. The law has since changed: s.13(8)(b) was omitted from 30 Mar 2026 (Finance Act 2026 s.157); earlier periods stay under the old text. |
| AAARM/s Ion Trading India Private LimitedUttar Pradesh AAAR, 16 Mar 2020Order No. 11/AAAR/16/03/2020 (appeal against AAR Order No. 42 dated 27-09-2019) | When a company rents parking spaces and recovers exactly the same amount from the employees who use them, is that taxable and at what value?It is a supply of service, but its value is nil if the company meets the pure-agent conditions of Rule 33: it acts on the employees' authorisation, does not use the spaces for itself, and passes on exactly what it pays. Not a travel case, but it shows when a recovered expense can stay out of the taxable value.“the value of the services in the present case will be NIL, as the appellant is providing the same in the capacity of a Pure Agent”CGST Rules r.33 (pure agent); CGST Act s.7(1), s.15AAAR order PDF, scanned (GST Council)Patron Accounting summary (secondary) | Turns on its factsOnly the applicant and its jurisdictional tax officers (CGST Act s.103); persuasive elsewhereNone known. Contrast the Tamil Nadu AAR in NTL India (2022): tolls a vehicle-rental firm recovered were part of the value. |
| AARGolden Vacations Tours and TravelsWest Bengal AAR, 23 Sep 201926/WBAAR/2019-20 (Case No. 32 of 2019) | When a tour operator books only hotel rooms for a client, with no tour or transport, is that a 5% tour-operator service, a hotel accommodation service, or something else?Neither. Booking accommodation alone is not tour operating, which means planning, scheduling, organising and arranging tours, and it is not the hotel's own accommodation service. It is a reservation service under SAC 998552, taxable under S.No. 23(iii), the residual support-services entry (18%), with ITC as admissible.“Arranging accommodation might be provided as add-ons, but that is not the essence of the tour operating service.”Notif. 11/2017-CT(Rate) S.No. 23(i) (tour operator, 5%) and S.No. 23(iii); SAC 998552; S.No. 7 (accommodation, SAC 996311)Ruling PDF (GST Council) | Turns on its factsOnly the applicant and its jurisdictional tax officers (CGST Act s.103); persuasive elsewhereNone known. |
| AARM/s Storm Communications Pvt Ltd, Kolkata (applicant)West Bengal AAR, 28 Jan 201939/WBAAR/2018-19 | Can a company registered in one state claim ITC of CGST+SGST charged by hotels, banquet halls and caterers in another state where it has no registration?No. Hotel, banquet and restaurant services are supplied where the property is, so the supplier rightly charges that state's CGST+SGST, and that tax is input tax only for a registration in that state. It cannot be claimed in another state even if the B2B invoice carries your GSTIN and shows in GSTR-2A.“A person, registered in WB, cannot claim ITC for CGST & SGST of other states.”IGST Act s.12(3) and (4); CGST Act s.2(62), s.25(4), s.49(4)WB AAR ruling, official PDF (WB Commercial Taxes) | ClarifiesOnly the applicant and its jurisdictional tax officers (s.103).No appeal found. No CBIC circular found on this point. |
SAC and HSN codes
The code you print on the invoice: SAC for a service, HSN for goods. Since 1 April 2021 an invoice must show at least 4 digits if last year’s turnover was up to ₹5 crore, and 6 digits above that. Descriptions follow the government’s classification of services.
| Code | What it is for | Covers | GST today |
|---|---|---|---|
| 996334SAC | Catering at events and halls | Weddings, exhibitions, functions | 5% (18% at specified premises) |
| 998555SAC | Tour operator services | Package tours with travel and stay | 5% (conditions) or 18% |
| 998552SAC | Booking hotels, cruises and packages | Agent's service for arranging stays and packages | 18% on the agent's fee |
| 998556SAC | Tourist guides | Guide services | 18% |
| 998596SAC | Event, exhibition and convention management | Organising conferences, launches, trade shows | 18% |
| 998554SAC | Booking event tickets | Agent's service for concerts and sports tickets | 18% on the agent's fee |
| 999621SAC | Performing arts events | Concerts, theatre, shows | See the events post |
| 999651SAC | Sports events | Organising and selling admission to sports events | See the events post |
Cabs inside a tour package
If you sell travel and stay together for one price, you are acting as a tour operator. The 5% rate needs three things: you take no input credit (except on tours bought from other tour operators), the bill says the price includes accommodation and transport, and the bill shows the full amount charged for the tour. Otherwise the package is 18%.
If you only supply the cabs to a tour operator, you bill your own cab hire at 5% or 18%. A tour operator on the 5% rate cannot claim your GST, so it will usually want your 5% option.
A tour operator sells a package for ₹60,000. It pays a hotel ₹30,000 plus 5% and an operator ₹20,000 plus 5% for the cabs.
| GST on the package (5%) | ₹3,000 |
| GST paid to the hotel and cab operator | ₹2,500 |
| Credit the tour operator can claim | ₹0 |
| Total GST in the package | ₹5,500 |
TCS on overseas tour packages
A seller of an overseas tour package collects TCS from the buyer on top of the price and deposits it against the buyer’s PAN. It is not a cost to the traveller: it counts towards their income tax, or comes back as a refund.
One buyer, packages bought in the financial year.
| FY 2025-26 | FY 2026-27 | |
|---|---|---|
| ₹3,00,000 package: rate | 5% | 2% |
| ₹3,00,000 package: TCS | ₹15,000 | ₹6,000 |
| ₹15,00,000 in the year: rate | 5% to ₹10 lakh, 20% above | 2% |
| ₹15,00,000 in the year: TCS | ₹1,50,000 | ₹30,000 |
Events: tickets, venues and management
- Organising an event or renting a hall without food: 18%.
- Banquets, food served with the hall: 5% since 1 October 2019, or 18% at specified premises (hotels with rooms above ₹7,500). At 5% there is no credit, except from 1 November 2026 on catering bought from other caterers, up to 5% of its value.
- Tickets up to ₹500 are exempt. Above that, theatre, circus and dance are 18%. Concerts have been 18% since 1 October 2021, when the 28% entry was narrowed to casinos, race clubs and IPL-type events; before that they were 28% as entertainment events. This is our reading, because no entry names concerts. IPL-type matches are 40% since 22 September 2025, and recognised sporting events 18%.
- Cabs for an event you bill to an event company: your cab hire at 5% or 18%. The event company can claim your GST if the cabs are part of the event it bills.
Common questions
Can a tour operator claim the GST on hotels and cabs?
Not on the 5% rate, which allows credit only on tours bought from other tour operators. On 18% it can claim credit on hotels, cabs and meals bought for its packages: items that are normally blocked are allowed when they are part of a taxable composite or mixed supply, such as the package it sells (section 17(5)(b)(i) proviso).
What TCS does a travel agent collect on an overseas package now?
2% of the amount from 1 April 2026, with no threshold. Before that it was 5% up to ₹10 lakh a year and 20% above.
Is TCS a cost for the traveller?
No. It is deposited against the traveller's PAN and counts towards their income tax, or comes back as a refund.
What is the GST on a concert ticket?
Nothing up to ₹500. Above ₹500, 18% since 1 October 2021 on our reading of the notification (it was 28% before). Some guides still say 28%, so confirm with your CA.
Words used on this page
- GST option (5% or 18%)
- For cab hire with driver and fuel you choose 5% with almost no input credit, or 18% with full input credit. Until 21 Sep 2025 the second option was 12%.
- ITC (input tax credit)
- GST you paid on business purchases that you subtract from the GST you collect.
- Same line of business
- Buying the same kind of service you sell, such as cab hire bought from another operator.
- RCM (reverse charge)
- The customer pays the GST to the government instead of the supplier.
- Body corporate
- A company or an LLP. Proprietors, HUFs and partnership firms are not body corporates.
- SAC / HSN
- The code printed on an invoice for a service (SAC) or for goods (HSN).
- Place of supply
- The state whose GST applies. It decides whether you charge IGST or CGST plus SGST.
- E-invoice / IRN
- Reporting an invoice to the government portal, which returns an Invoice Reference Number and a QR code.
- Pure agent
- Someone who pays an expense on the customer's behalf, with its authority, and recovers it at actual cost.
- TDS
- Tax your customer cuts from a payment to you and deposits against your PAN. You claim it in your income tax return.
- TCS
- Tax a seller collects from the buyer on top of the price, such as on overseas tour packages.