MakeMyTrip, Yatra, and Cleartrip are in great confusion over the newly implemented TCS provision coming under the Goods and Services tax regime. The e-commerce companies are set to deduct the TCS under the TCS provision except for the agents.
The agents of International Air Transport Association (IATA) who have offline and online businesses come under this. A TCS provision circular notification has also been issued in this regard.
Many of the agents are resisting this provision and have a statement such as, “It is not a marketplace. We carry the full transaction. We are IATA agents and should not fall under the ambit of TCS. We are seeking a clarification from the government,” said Pravin Chugh, president, Travel Agents Federation of India (TAFI).
Agents are still under the mediation form and there is only sales commission which they earn, so they are rebelling the new TCS provision under GST to save themselves from added burden of TCS provision.
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There is, however, some doubt over the exemption of agents and definition as there are sub-agents who are into the business of purchasing tickets from the otherwise IATA agents.
The current TCS provision deducts 0.5 per cent state GST and 0.5 per cent central GST on the intrastate supplied products which are in the amount of above than INR 2.5 lakhs.
Hello,
Can anyone clarify me what are the updates of this matter? We want to start a tour market place business and stuck at GST provision. Please mail me the details of how a travel or tour aggregator pays GST to the government.
Thanks