If your travel agency's annual turnover exceeds ₹20 lakh (₹10 lakh in special category states), GST registration is mandatory. But even below this threshold, voluntary registration has advantages. Here's everything you need to know.
When is GST registration mandatory?
| Scenario | Registration required? |
|---|---|
| Turnover above ₹20 lakh | Yes - mandatory |
| Turnover above ₹10 lakh (special category states) | Yes - mandatory |
| Selling interstate (e.g., Delhi agent selling to Mumbai client) | Yes - mandatory regardless of turnover |
| Supplying through e-commerce platforms | Yes - mandatory |
| Turnover below ₹20 lakh, selling locally only | Optional (but recommended) |
For travel agents: Since you likely serve clients from multiple states, interstate supply rules usually make registration mandatory regardless of turnover.
Benefits of voluntary registration
Even if you're below the threshold:
- Issue proper GST invoices (builds credibility with corporate clients)
- Claim input tax credit on business expenses
- Sell to corporate clients who need GST invoices for their ITC claims
- List on B2B travel portals that require GSTIN
Documents needed
For sole proprietorship
- PAN card of proprietor
- Aadhaar card
- Bank account statement or cancelled cheque (showing proprietor's name)
- Proof of business address (electricity bill, rent agreement, property tax receipt)
- Passport-size photograph
- Business registration (if any - shop establishment certificate, etc.)
For partnership firm
- Partnership deed
- PAN of the firm
- PAN and Aadhaar of all partners
- Authorization letter signed by all partners
- Bank account details of the firm
- Address proof of the firm's principal place of business
For private limited company
- Certificate of Incorporation
- MOA/AOA
- PAN of the company
- Board resolution authorizing signatory
- PAN, Aadhaar, and photo of all directors
- Bank account details
- Address proof of registered office
Step-by-step registration process
Step 1: Go to GST portal
Visit gst.gov.in → Services → Registration → New Registration
Step 2: Fill Part A
- Select "Taxpayer" as type
- Enter state, district, legal name of business, PAN, email, and mobile number
- You'll receive OTPs on both email and mobile - verify them
- You'll get a TRN (Temporary Reference Number)
Step 3: Fill Part B
Use the TRN to continue the application:
- Business details: Trade name, constitution (proprietorship/partnership/company), date of business commencement
- Promoter/Partner details: PAN, Aadhaar, address, photo, designation
- Principal place of business: Address with supporting documents
- HSN/SAC codes: For travel agents, primary SAC code is 9985 (Travel arrangement services)
- Bank account details: Account number, IFSC, bank name
- Verification: Digital signature (DSC) for companies; Aadhaar authentication or EVC for others
Step 4: Submit and track
- Submit application with DSC or Aadhaar-based verification
- Application is processed within 3–7 working days
- If queries are raised, respond within 7 days through the portal
- Once approved, GSTIN is allotted
Choosing the right scheme
Regular scheme
- Applicable to most travel agents
- Charge GST (5% or 18% depending on your choice)
- File GSTR-1 (outward supplies) and GSTR-3B (summary return) monthly or quarterly
- Claim input tax credit
Composition scheme
| Feature | Applicable? |
|---|---|
| Turnover limit | ₹1.5 crore (₹75 lakh for services) |
| Can claim ITC? | No |
| Can supply interstate? | No |
| GST rate for services | 6% (3% CGST + 3% SGST) on turnover |
| Filing frequency | Quarterly |
For travel agents: Composition scheme is generally NOT suitable because:
- You likely have interstate clients (not allowed under composition)
- 6% flat on turnover may be higher than 5% on package value
- No ITC means you can't recover GST on business expenses
Recommendation: Go with the regular scheme.
SAC codes for travel services
| Service | SAC Code |
|---|---|
| Travel arrangement and tour operator services | 9985 |
| Passenger transport (air) | 9964 |
| Accommodation services | 9963 |
| Tour guide services | 9985 |
| Travel insurance arrangement | 9971 |
Your primary SAC code on registration should be 998551 (Tour operator services) or 998559 (Other travel arrangement services).
Post-registration compliance
Monthly/Quarterly returns
| Return | Due date (monthly) | Due date (quarterly - QRMP) |
|---|---|---|
| GSTR-1 (sales) | 11th of next month | 13th of month after quarter |
| GSTR-3B (summary + payment) | 20th of next month | 22nd/24th of month after quarter |
Annual return
- GSTR-9: Due by December 31 of the following financial year
- GSTR-9C (audit): If turnover exceeds ₹5 crore
Invoice requirements
Every invoice you issue must contain:
- Your GSTIN
- Invoice number (sequential, unique per financial year)
- Date of issue
- Client name and address (GSTIN if registered)
- SAC code
- Taxable value
- GST rate and amount (CGST + SGST or IGST)
- Place of supply
- Signature or digital signature
Common post-registration mistakes
- Not filing nil returns - even if you had zero sales in a month, you must file GSTR-1 and GSTR-3B
- Late filing - attracts ₹50/day penalty (₹20/day for nil return) + interest on tax due
- Wrong place of supply - for tour packages, place of supply is the location of the client (not destination of travel)
- Not updating registration - if you change address, add a branch, or change partners, update within 15 days
- Missing annual return - GSTR-9 is mandatory; non-filing blocks your return filing for the next year
Timeline summary
- Day 1: Gather documents
- Day 2: File application online
- Day 3–10: Application processed (or queries raised)
- Day 10–15: GSTIN allotted
- Immediately: Start issuing GST-compliant invoices
- Monthly: File returns and pay tax
How TripDraft helps
TripDraft generates GST-compliant invoices with your GSTIN, correct SAC codes, and proper tax breakdowns automatically. No manual formatting - every quote that converts to a booking has a ready-to-use tax invoice.