QUESTION

Our client is in the business of travel industry where they work as an agent & makes the bill in following manner:

Bill to Mr. XYZ (registered in GST)
Guest name: Mr. ABC
Reibursement of Hotel Charges Rs. 90,000/-
Service Charge Rs. 10,000/-
GST @18% Rs. 1800/-
Total Invoice Invoice Amount Rs. 1,01,800/-

My question is, how this invoice is shown in GSTR 3B & GSTR 1 as B2B in the name of Mr. XYZ?
 

ANSWER

Facts of the case:
Mr A is in the business of travel industry where they work as an agent & makes the bill in following manner:
Bill to Mr. XYZ (registered in GST)
Guest name: Mr. ABC

Reimbursement of Hotel Charges  Rs. 90,000/-
Service Charge   Rs. 10,000/-
GST @18%  Rs. 1800/-
Total Invoice Invoice Amount Rs. 1,01,800/-

How this invoice is shown in GSTR 3B & GSTR 1 as B2B in the name of Mr. XYZ?

Law Applicable: Section 15 of CGST Act, 2017
Section 15: Value of taxable supply
(1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.
……………………..
…………………….
…………………….

CGST RULE 33

RULE 33: Value of supply of services in case of pure agent (corresponding section 15)

Notwithstanding anything contained in the provisions of this Chapter, the expenditure or costs incurred by a supplier as a pure agent of the recipient of supply shall be excluded from the value of supply, if all the following conditions are satisfied, namely,-

(i) the supplier acts as a pure agent of the recipient of the supply, when he makes the payment
……………………….
……………………....
………………………

CGST RULE 59 (FORM GSTR-1):

4. Taxable outward supplies made to registered persons (including UIN - holders) other than supplies covered by Table 6

(Amount in Rs. for all Tables)

GSTIN/ UIN

Invoice details

Rate

Taxable value

Amount

Place of Supply (Name of State/UT)

No.

 Date

Value

Integrated Tax

Central Tax

State / UT Tax

 Cess

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Reply: The travel agent received Rs.1,01,800. The breakup is as follows:

Ticket charges  Rs.90,000
Service charges   Rs.10,000
IGST @18% on Rs. 10,000 Rs.1800
Total Rs. 1,01,800

In Tile No. 4 of GSTR-1 show full value in column no. 4 and taxable value in column no. 6

Attention: We understand that travel agent is charging no tax on Rs. 90,000 because it is an expense paid by him in capacity of pure agent of the client.
We are enclosing herewith Rule 33 which is applicable for the valuation in case of pure agent.
You are requested to please check carefully that all the conditions given in the Rule 33 are duly fulfilled. In case of any miscalculation the tax may be demanded by the GST officer on Rs.1,00,000. (Reply dt. 28/07/2021)