Dear Sir,

We are facing a issue while filing GSTR-1. The taxpayer is a travel agent and charges commission for the service provided. The sample of invoices issued by the taxpayer is attached thereto. The 1^st bill is of a domestic flight booking on which commission is charged and 2^nd invoice is of travel insurance on which no commission is charged.

While Filing GSTR-1, in B2B section, what should be the Total Invoice Value of the bill, for example in case of 1^st invoice whether Total Invoice Value should be 

-Rs. 118(i.e. Rs 100 (commission) + Rs. 18(GST)) or 

-it should be Rs. 3500(i.e. 3382 (basic fare + other taxes)+ Rs. 100 (Commission) + Rs.18(GST))

Further if total invoice value is taken as Rs. 3500 then there would be a significant difference between Total Invoice Value i.e. Rs. 3500 and Total Taxable Value i.e. Rs. 100. How would this difference amount would be entered?

Likewise in case of 2^nd invoice where no commission is charged. Whether the invoicing is correct or not. If not then How would it be invoiced? And How would the bill be entered in GSTR-1 as it does not bears any Taxable value? 

Thanking You in anticipation and expecting prompt resolution of matters from you. 

Reply

Dear Sir,

In my opinion, in this scenario a parson engaged in air travel agency business can raise invoice in the following matter.

Invoice to passenger 

As per the above format of invoice,  the booking fee (commission fee on service provided) charged by the tour operator is classified as taxable value and amount of ticket is classified as reimbursement of expenses, this classification makes it clear that the actual taxable turnover for the tour operator is   just rs. 236/- instead of Rs. 10,236/-.