Exemption in relation to Tour Operator services provided outside India [ Entry No. 54, 54A of IGST ] - GST Ready Reckoner - GST

Exemption entry 54 Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India. Exemption entry 54A [ A tour operator provides a tour operator service to a foreign tourist ] Tour operator service, which is performed partly in India and partly outside India, supplied by a tour operator to a foreign tourist, to the extent of the value of the tour operator service which is performed outside India. The value of the tour operator service performed outside India shall be a) such proportion of the total consideration charged for the entire tour which is equal to the proportion which the number of days for which the tour is performed outside India has to the total number of days comprising the tour, or b) 50% of the total consideration charged for the entire tour, whichever is less calculate number of days for making the above calculations , any duration of time equal to or exceeding 12 hours shall be considered as one full day and any duration of time less than 12 hours shall be taken as half a day . Explanation. - foreign tourist means a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non- immigrant purposes. Illustrations: A tour operator provides a tour operator service to a foreign tourist as follows: - (a) 3 days in India, 2 days in Nepal; Consideration Charged for the entire tour: Rs.1,00,000/- a) Rs.1,00,000/- x 3/5 = Rs.40,000/- or, b) 50% of Rs.1,00,000/- = Rs.50,000 /- Exempt whichever is less, i.e., Rs.40,000/- Remaining Amount Taxable Rs. 60,000/- (b) 2 days in India, 3 nights in Nepal; Consideration Charged for the entire tour: Rs.1,00,000/- a) Rs.1,00,000/- x 3/5 = Rs.60,000/- or, b) 50% of Rs.1,00,000/- = Rs.50,000 /- Exempt whichever is less, i.e., Rs.50,000/- Remaining Amount Taxable Rs. 50,000/- (c) 2.5 days in India, 3 days in Nepal; Consideration charged for the entire tour: Rs.1,00,000/- a) Rs.1,00,000/- x 3/5.5 = Rs.54,545/- or, b) 50% of Rs.1,00,000/- = Rs.50,000 /- Exempt whichever is less, i.e., Rs.50, 000/- Remaining Amount Taxable Rs. 50,000/-