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Since the applicant is rendering only transportation with some ancillary services and not accommodation, therefore, rate of GST 5% will not applicable as applicable on tour operators under SAC 9985

Authority for Advance Ruling —– Tour and Travel Services -- The applicant is engaged in business of providing tour services identified by the Main Tour Operator. The applicant submitted that they provide local transportation services along-with services like elephant ride, lunch/dinner, local sightseeing, guide services etc. There is a contractual understanding between the tourist and the main tour operator to provide a complete packaged tour. In turn the main tour operator engages sub- tour operator such as the applicant to provide local transportation services along-with one or more of the services like providing guide services, sightseeing, and elephant ride. The said services together constitute an essential part of the packaged tour. In respect of the said transactions, the Applicant raises a single invoice wherein all the services are shown as separate line item. The applicant sought an advance ruling as to whether the rate of 5% under heading 9985 (i) is applicable on transaction which the Applicant intents to undertake wherein a single invoice is raised in respect of all the services i.e. local transportation services along-with services like sightseeing, tour guide, elephant ride etc., provided by the Applicant to The Main Tour Operator.
Held that:- The Hon’ble Authority for Advance Ruling held that the services provided by the applicant do not fall under the purview of Serial No.23 (i) of Chapter heading 9985 of Notification No.11/2017-Central Tax (rate) dated 28.06.2017 (as amended) and rate of GST 5% is not applicable.— Crown Tours And Travels-, In Re… [2020] 26 TAXLOK.COM 085 (AAR-Rajasthan)

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