SAC codes
SAC code for travel agency services: 998551
A travel agent's fee for booking a ticket is a reservation service; the fare itself belongs to the airline or railway.
In short
Travel agents booking air, rail or bus tickets use SAC 998551, and hotel bookings 998552, usually at 18% on the agent's fee. SimpleERP keeps the fee and the fare on separate lines, each with its own tax.
Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.
The data
SAC 998551 at a glance
| Item | Value |
|---|---|
| 6-digit SAC | 998551 (998552 for hotel booking) |
| 4-digit group | 9985: support services |
| Chapter 99 heading | Reservation services for transportation |
| Usual GST rate | 18% on the agent's fee or commission (as notified; check the GST portal) |
| Reverse charge | Forward charge for most suppliers: the agent charges GST on its fee |
| Exemption | No exemption on the fee; the fare collected as a pure agent stays out of the agent's value |
| Who typically bills it | Travel agents, ticketing agents and corporate travel desks |
Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications. Verified .
Which SAC code goes on a travel agency invoice?
Use 998551, reservation services for transportation, for booking air, rail, bus and cab travel. It sits in group 9985, support services, under chapter 99 (services), in the 99855 family of travel arrangement services. Hotel booking is 998552, and a package you sell as a tour operator is 998555 on the tour operator page.
Sky Route Travels in Coimbatore, Tamil Nadu, books flights for Lakshmi Steel Furnitures' sales team and bills a service fee per ticket under 998551, with the fare shown as a reimbursement on its own line.
What GST rate applies to travel agency services?
A travel agent's service fee is usually taxed at 18%. On a ₹500 fee per domestic ticket, that is ₹45 CGST and ₹45 SGST for a client in your state. The air fare carries the airline's own GST on the ticket. Air agents paid by commission from the airline have special valuation rules as notified. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- Ticket booking fee: 998551
- Hotel booking fee or commission: 998552
- Fare collected for the airline: a pure agent line, not your income
- Tour packages sold as principal: 998555, with its own options
A travel agency invoice line in SimpleERP
Save Ticket booking fee and Hotel booking fee as services with their SAC codes and 18%. Save Fare reimbursement as a service with the No tax rate, so the fare shows on the invoice without adding to your taxable value.
- SAC 998551 prints on the booking fee line
- Place of supply picks CGST plus SGST or IGST from the customer's state
- The HSN/SAC summary for GSTR-1 shows your booking fees under 998551
- Corporate clients see fee and fare apart on one invoice
Illustration of the keyboard-first invoice editor with a focused line, live tax totals and shortcut hints.
When is reverse charge or an exemption involved?
Travel agency fees are under forward charge. There is no exemption on your fee, but the fare you collect as a pure agent, in the traveller's name and recovered at actual cost, is not part of your value. Bookings for travel outside India and for clients abroad raise place of supply questions. SimpleERP bills in rupees only, so record any foreign currency booking at its rupee value.
- Forward charge on the agent's fee
- Fare as pure agent: outside your taxable value when the conditions are met
- Foreign travel bookings: check the place of supply rule
- Commission from airlines and hotels is taxable income
FAQ
Questions, answered
I earn commission from airlines and also charge clients a fee. Is GST on both?
Generally yes: commission from the airline is a service to the airline, and the fee to your client is a service to the client, both commonly at 18%. Air travel agents have an optional valuation rule as notified. Confirm which applies to your model with your CA.
Do I charge GST on the full ticket price?
No, only on your own service charge, when you collect the fare as a pure agent for the airline or railway and show it separately at cost. The airline charges its own GST on the fare.
Which code do I use for hotel bookings?
998552, reservation services for accommodation, cruises and package tours, applies to your booking fee or commission. The room tariff itself is the hotel's supply, with its own rate under hotel accommodation.
Can I bill a client in US dollars?
SimpleERP does not bill in foreign currency. Raise the invoice in rupees at the rate you agreed, and keep the foreign currency amount in the description if the client needs it.
Related
Keep reading
GST billing for travel agencies
Tour package and booking fee invoices with SAC codes, the 5% or 18% option, and advances applied to the bill.
Read moreGST invoice for services
A GST invoice format for services, with SAC codes and no stock columns, as a free Excel, Word and PDF download.
Read moreSAC code
The code that classifies services for GST, as HSN codes do for goods.
Read more
Run your whole business from one simple place.
Seven days free. No card. Your first GST invoice in minutes.