Example 25

Mr. X had booked Air ticket with air travel agent from Mumbai - Delhi 15 days before travel date for Rs. 5000/- approx.. and paid the amount immediately, say, basic fare of Rs 3000 on which commission is normally paid to air travel agent. Calculate the value of supply for the purpose of GST.

Ans. As per rule 32(3) - Determination of value in respect of certain supplies, value of supply of service of booking of tickets by air travel agent in case of domestic booking is 5% of basic fare and in international booking is 10% of basic fare.

Hence, in the above example, Value of Supply= 5% of Rs. 3000 = Rs. 150.