HSN and SAC codes

HSN and SAC codes for travel agencies

Name: HSN and SAC codes for travel agencies
Creator: SimpleERP
License: https://simpleerpsoftware.com/legal/terms

A travel agency bills its commission on tickets, its fee on hotel bookings and, for packages, the whole tour. Each of those is a different code and often a different rate.

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In short

Travel agencies bill bookings under SAC 998551 and 998552 and tour packages under 998555, often at 5% without input tax credit. SimpleERP prints the code on each line and builds the HSN summary for GSTR-1, for domestic billing in rupees.

Lakshmi Steel Furnitures

14 Avinashi Road, Peelamedu, Coimbatore 641004

GSTIN 33AAACL1234A1ZG

Tax invoice

INV-2026-27-0213

Date 03/10/2026

Bill to

Ravi Stores

Big Bazaar Street, Coimbatore 641001

GSTIN 33ABCPR4821K1ZN

Place of supply

Tamil Nadu (33)

Due 02/11/2026

Item	HSN	Qty	Rate	Taxable
Steel rack 4 shelf	9403	2	4,990.00	₹9,980.00

Scan to pay by UPI

lakshmisteel@okhdfc

Taxable value: ₹9,980.00
CGST 9%: ₹898.20
SGST 9%: ₹898.20
Round off: −0.40
Total: ₹11,776.00

Amount in words: Eleven thousand seven hundred seventy-six rupees only

The data

The codes and usual rates

Code	Goods or service	Usual GST rate	Notes
998551	Reservation services for transportation (air, rail, bus tickets)	18%	On your commission or service fee. Air agents may value it at a notified share of the basic fare instead.
998552	Reservation services for accommodation, cruises and package tours	18%	Hotel booking fee or commission.
998553	Reservation services for convention centres and exhibition halls	18%	MICE bookings.
998554	Reservation services for event tickets and other reservations	18%	Concerts, parks and attractions.
998555	Tour operator services	5% without ITC	On the full package value; check the condition on input tax credit before choosing.
998556	Tourist guide services	18%	Guides billed separately from a package.
998559	Other travel arrangement and related services	18%	Visa assistance and similar support; check the fit.
996311	Hotel room accommodation up to ₹7,500 a night	5% without ITC	Cut from 12% on 22 September 2025.
996311	Hotel room accommodation above ₹7,500 a night	18%	The band is set by the value of supply per unit per day.
996601	Rental of road vehicles with operator (cab hire)	check	Usually 5% without ITC or a higher rate with ITC; confirm the option that applies.
996425	Domestic air passenger transport	check	Economy and other classes carry different rates; confirm the current entry.
4202	Travel bags, pouches and document holders	18%	If you give or sell branded kits; check the heading for the material.

Usual rates after 22 September 2025, verified on the date shown. The tour operator and hotel rates come with conditions on input tax credit. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

Sources: CBIC: classification of services (SAC), CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025. Verified 10 October 2026.

Which HSN and SAC codes does a travel agency use?

A travel agency sells almost nothing but services, so its codes are SAC codes in group 99855 for travel arrangement. Booking an air, rail or bus ticket is a reservation service for transportation. Booking a hotel is a reservation service for accommodation. Selling a package with travel, stay and sightseeing in one price is a tour operator service, which has its own rate. When you buy hotel rooms and cabs to resell in a package, those come with the hotel's and cab operator's own codes.

What changed on 22 September 2025 for travel agencies?

The main change for agencies was hotel stays. Rooms with a value of supply up to ₹7,500 per unit per day moved from 12% to 5% without input tax credit; rooms above that stay at 18%. Passenger transport options were also revised, so check the rate for cabs and buses you resell in a package. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

Package prices quoted before the change may need revising if the hotel cost inside them dropped.
Hotel invoices you receive at 5% carry no input tax credit for the hotel, which affects what you can claim.
Your own commission on bookings stays at 18%.

HSN and SAC on invoices and the GSTR-1 summary in SimpleERP

Set up each kind of booking or package as a service with its code and rate, then bill it in rupees.

Separate services for air booking fee, hotel booking fee and tour packages, each with its own SAC code and rate.
CGST and SGST or IGST chosen from the customer's place of supply.
Supplier bills from hotels and cab operators recorded as purchases, so cost and margin per package sit in one ledger.
HSN summary report by code, exported to CSV for your CA. SimpleERP does not file the return.

app.simpleerpsoftware.com/o/lakshmi-steel/accounting/reports

Profit and loss

Apr–Sep 2026

Sales₹18,42,600

Cost of goods sold(₹10,38,900)

Gross profit₹8,03,700

Salaries and wages(₹2,48,000)

Rent(₹72,000)

Power and fuel(₹38,400)

Other expenses(₹32,500)

Total expenses(₹3,90,900)

Net profit₹4,12,800

GST summary

Output tax₹3,31,668

Input tax₹1,75,554

Net payable₹1,56,114

Books locked to 30/06/2026. Postings on or before it are refused.

The HSN summary totals booking fees and packages by SAC code for the HSN table of GSTR-1.

Reverse charge and exemptions that touch travel agencies

A few rules decide how much of a package you can claim and who pays the tax, as notified; check each with your CA.

Tour operator packages at 5% come without input tax credit on the hotels, cabs and services inside them; the other option carries a higher rate with credit.
Rent-a-cab services you buy from an operator may be under reverse charge depending on the operator and the rate it charges.
Air agent commission can be valued at a notified share of the basic fare instead of the actual commission.
SimpleERP has no reverse charge flag on invoices; put the wording in the invoice notes.

Sources

Honest limits

What SimpleERP does not do for travel agencies

Multi-currency invoices. SimpleERP bills in rupees only, so it fits domestic travel; foreign currency packages and export invoices are not covered.
Ticket or seat inventory and booking engines. Bookings are made on the airline or GDS portal; SimpleERP bills them.
A reverse charge flag, e-invoice IRN and GST return filing.

FAQ

Questions, answered

What is the SAC code for a travel agent?

Ticket bookings are usually billed under 998551, reservation services for transportation, and hotel bookings under 998552. A full package sold as a tour operator falls under 998555. Commission and booking fees usually carry 18%. Confirm the exact code and rate against the SAC list.

What GST rate applies to a tour package?

A tour operator package is usually taxed at 5% on the full value without input tax credit on the services inside it. A higher rate with input tax credit may be available. Check the current notification and the conditions with your CA before you price a package.

Can SimpleERP bill foreign clients in dollars?

No. SimpleERP bills in rupees only, so it suits agencies whose customers pay in India for domestic travel. If you sell outbound packages priced in foreign currency or export services to overseas clients, you will need another tool for those invoices.

What is the GST rate on hotel rooms after September 2025?

Since 22 September 2025, rooms with a value of supply up to ₹7,500 per unit per day are usually taxed at 5% without input tax credit, and rooms above that at 18%. Confirm the current band with your CA or the GST portal before you bill.

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