Packaged Tours and Place of Supply Provisions under GST

In this article, the author has discussed the place of supply provisions applicable to tour operator's services of providing “packaged tours”. The legislative history of the amendment to the definition of ‘tour operator’ and changes in the provisions relating to the situs of the service are relevant in interpreting the GST Law, and hence the same are also discussed. Packaged Tours are those tours where the entire tour arrangement, viz planning, organising, scheduling, booking of accommodation, sightseeing, traveling, etc., is done by the tour operator. There can be a “domestic tour” (i.e., Tour in India) or “a foreign tour” (Tour outside India). This article also highlights key observations on extraterritorial jurisdiction in taxing tours conducted outside India.

PLACE OF SUPPLY — INTRODUCTION

The “place of supply” plays a crucial role in deciding the taxability of the supply for the purposes of goods and services tax. As per section 2(86) of the CGST Act, “place of supply” means the place of supply referred to in Chapter V of the IGST Act. The Levy of GST is on the intra-state supply and inter-state supply of goods or services or both. The provisions as to what constitutes intra-state supply or inter-state supply are contained