travel desk hsn code

PASSENGERS TRANSPORT SERVICES - GST RATES SAC CODE 9964

Passenger transport services are a crucial part of the Indian economy. The transportation of passengers is a basic necessity for society and is essential for businesses to function. The Indian government has introduced GST rates and SAC codes for passenger transport services, which are mandatory to comply with.

What are Passenger Transport Services?

Passenger transport services refer to the movement of people from one place to another. This includes services like buses, taxis, railways, metros, etc. These services are used by individuals, businesses, and the government for various purposes like commuting, travel, tourism, etc.

What is the GST Rate for Passenger Transport Services?

The GST rate for passenger transport services is 5%. This rate is applicable to all passenger transport services, including air travel, railways, and road transport services. However, cab aggregators like Uber and Ola are exempted from GST under certain conditions.

According to the GST Council, cab aggregators are exempted from GST if their annual turnover is less than Rs. 20 lakhs. However, if their turnover exceeds this limit, they will have to register for GST and pay tax at the rate of 5%.

What is SAC Code 9964 for Passenger Transport Services?

SAC code 9964 refers to the “Passenger Transport Services” category. This SAC code is applicable to all passenger transport services, including air travel, road transport, and railways.

Under this SAC code, all services related to passenger transport are covered, including transportation charges, parking charges, toll charges, etc. It is important to note that the SAC code is mandatory for all businesses providing passenger transport services.

How to Calculate GST for Passenger Transport Services?

To calculate GST for passenger transport services, the following formula can be used:

GST = (Total Fare – Input Tax Credit) x 5%

Here, Total Fare refers to the total amount charged for the passenger transport service, including all taxes, fees, and charges. Input Tax Credit refers to the tax credit that can be claimed for inputs used in providing the service, like fuel, maintenance, etc.

Passenger transport services are an essential part of the Indian economy, and complying with GST rates and SAC codes is mandatory for all businesses providing these services. The GST rate for passenger transport services is 5%, and the SAC code 9964 is applicable to all passenger transport services. By following the guidelines set by the government, businesses can ensure that they are operating within the law and contributing to the growth of the economy.

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• Goods and Services Tax

GST on Travel Agents & Tour Operators

Introduction: This article discusses in detail about GST on Travel Agents & Tour Operators & its related aspects.

Air Travel Agent

An Air Travel Agent earns two types of income:

• commission from the Airlines for booking of air tickets;
• income in the form of processing fees etc. from the client for whom he books the tickets.

So the Air Travel Agent shall be raising below 2 types of invoices containing the details of name, address, GST Registration Numbers of the parties to whom the invoice is being issued and details about Place of Supply.:

• On the Airlines for commission for selling its Air tickets;
• On the Air traveler for its processing fees/ service charges / facilitation charges.

As per rule 32(3) of CGST Rules , the value of supply of services in relation to booking of tickets for travel by air provided by an air travel agent , shall be deemed to be an amount calculated at the rate of:

• 5% of the basic fare in the case of domestic bookings , and
• 10% of the basic fare in the case of international bookings

Explanation – For the purposes of this sub-rule, the expression “basic fare” means that part of the air fare on which commission is normally paid to the air travel agent by the airline.

So, GST is payable is as par below chart:

Place of supply for an Air Travel Agent(ATA) for booking tickets to Pax

When an Air Travel Agent provides services to a person who is:

1. Located in India and the person is registered under the GST law then, the place of Supply shall be the location of service receiver;

2. Located in India but not registered under the GST Law but his address is available on records then the place of Supply shall be the location of the service receiver;

3. Located in India but not registered under the GST Law and his address is not available on records then the place of Supply shall be the location of the service provider;

4. If in case of the Air Travel Agent who is located in India but the Origin and Location of Airlines is not from India and the destination as well as location of passenger is not in India.

Then in the given case neither the Airlines nor the passenger will be registered under GST and nor will their address be available from the records, hence in the given case the place of supply shall be the location of service provider i.e. the location of the Air Travel Agent which is in India and hence this transaction would be liable to Tax.

Examples for place of supply in case of an Air travel Agent where ATA receives processing fees / Service charges from the Passenger (Pax):

Examples for place of supply in case of an Air travel Agent where ATA receives Commission from the Airlines:

Segment Payouts / commission/ incentives from CRS/GDS

Air Travel Agent also earns Segment Payouts / commission/ incentives from CRS/GDS like Ameadus, Worldspan, Galileo, Abacus for using their software for making booking in Airlines reservations systems.

Place of supply of services.

• In case the services are provided by the Air Travel Agents to Indian software companies, then the place of supply of services shall be the location of services receiver i.e. place of registration of Indian software company.
• In case the services are provided by the Air Travel Agents to foreign software companies, then the agent would fall within the definition of “intermediary” AND the place of supply of services shall be the location of services provider i.e. place of Air Travel Agent.

VISA AND PASSPORT ASSISTANCE

The visa processing charges charged by visa statutory authorities i.e. the consulates/embassies will be exempt from the payment of GST.

Visa/passport processing charges charged only by the statutory authorities is exempt from tax.

Visa/passports are done through Visa Facilitation Centers (VFCs) authorized by embassies / Visa Handling Agents then the same shall be liable to tax.

However, when the ATA provides these services to their client after adding further fees by whatever name called he shall be liable to pay tax on them as well and he can take Input Tax Credit of the tax paid to the VFC. GST will be applicable @18% for this service.

DOMESTIC AND INTERNATIONAL MEDICLAIM POLICIES AND TRAVEL INSURANCE BY TRAVEL AGENTS

Travel Agents issues mediclaim policies and travel insurance for clients through various insurance service providers and gets commission on cut and pay basis or at the end of the month (for overseas policies)

The Travel Agents must be registered Insurance agent to issue mediclaim policies and travel insurance in India.

The agents are required to register with IRDA as per Insurance Act, 1938.

Place of supply for an Air Travel Agent(ATA) for issuing travel/ mediclaim insurance policies to Pax shall be as listed below.

1. Located in India and is registered under the GST law then, the place of Supply shall be the location of service receiver;

4. If in case of the Air Travel Agent who is located in India but the mediclaim and travel insurance services are provided to a person who is not located in India, then the place of supply shall be the location of service provider i.e. the location of the Air Travel Agent which is in India and hence this transaction would be liable to Tax.

GST will be applicable @18% for this service

DOMESTIC / INTERNATIONAL HOTEL BOOKINGS

• In case of hotel bookings the tour operator is acting as an intermediary for the purpose of booking tours for his
• Hence in case it is domestic hotel booking then the place of supply shall be as per the general rule i.e. location of Hotel.
• In case it is international hotel booking then the place of supply shall be location of agent.

Examples for place of supply in case of an Agent where the agent receives Commission from the hotel/Cruise:

Place of Supply for an agent who books hotel/Cruise for the client and receives Service charges/ Markup from the client and hotel/Cruise directly raise invoice to the client, when service recipient is:

4. where the location of Tour operator is in India and the location of the recipient is out of India, the place of supply in this case shall be the:

• Location where the services are actually performed

Examples for place of supply in case of an Agent where the agent receives Service charges/Markup from the Pax :

GST will be applicable @5% with no ITC

Inbound /outbound package tours provided by the tour operator

Inbound tour operators

Tours organized by the Tour Operator, within India for the tourist coming from abroad is generally known as inbound tours.

There may be two types of contracts entered into by the tour operator:

• the tour operator receives commission i.e. it has booked the tour on commission basis or
• on principal basis i.e. on its own account has done the various bookings and then raises bill on the client.

If the tour is on principal basis then the place of supply of service shall be the location of performance of service i.e. in India and Taxable @ 5% without ITC.

However if the tour is on commission basis then the tour operator will be acting as an intermediary and the place of supply shall be the location of service provider i.e. in India and hence the services will now become taxable and Taxable @18%.

Outbound tour operators

Tours organized by the Tour Operator, outside India, for the tourist going abroad is generally known as outbound tour.

The Place of supply in case where the tour operator receives commission from another tour operator situated outside India, shall be the place of the tour operator i.e. India.

The place of supply in case of Principal to Principal outbound tour operator services is, when service recipient is:

The place of supply where an agent is booking a car on hire (with or without driver) to be further provided to any Pax or any Agent for Service charges/Markup, shall be determined as below.

When an Travel Agent provides services to a person who is:

Examples for place of supply in case of an Agent where the agent books a car for a pax or for an agent on Service charge basis :

GST applicable for renting of motor vehicle shall be @ 5% with no ITC or 12% with ITC.

Foreign Railway booking:

If an agent is receiving commission from a foreign railway company which has its registered office out of India, the place of supply shall be determined in accordance with Section 13(8)(c), i.e. Location of supplier of Service (INTERMEDIARY) i.e. the agent.

If an agent is receiving commission from a foreign railway company which has its registered office in India, the place of supply shall be determined in accordance with Section 12(2), i.e. when an Travel Agent provides services to a person who is:

• Located in India and is registered under the GST law then, the place of Supply shall be the location of service receiver;
• Located in India but not registered under the GST Law but his address is available on records then the place of Supply shall be the location of the service receiver;
• Located in India but not registered under the GST Law and his address is not available on records then the place of Supply shall be the location of the service provider.

Examples for place of supply in case of an Agent where the agent receives commission from the foreign railway company:

If the agent is receiving Service charges from the Pax, the place of supply shall be determined in accordance with Section 12(2), i.e. when an Travel Agent provides services to a person who is:

Examples for place of supply in case of an Agent where the agent receives Service charges from the Pax:

GST for booking for foreign railway is @18%

Foreign Exchange:

The following options for determining value of supply for a person providing service in relation to purchase or sale of foreign currency and money changing:

List of Travel related services along with HSN code & rates of taxes

The author is a practising CA and is registered Insolvency Professional. He can be reached at [email protected] , Mob. +91 9953587496.

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Name: VINOD CHAURASIA

Qualification: ca in practice, company: vinod chaurasia & associates (chartered accountants), location: new delhi, new delhi, in, member since: 07 jun 2017 | total posts: 62, my published posts, join taxguru’s network for latest updates on income tax, gst, company law, corporate laws and other related subjects..

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32 Comments

Please provide me ITC part as tour operator. If I get hotel bill from vendor in Slkim for a package tour conducted by me (WB) , will I get ITC in my place WB (tour operator)

मेरा क्लाइंट टूर ऑपरेटर है क्या वोह किसी महीने में १८% का बिल काट कर इनपुट लेता है और फिर वह 5% पर काट कर टैक्स जमा करता है तो कोई प्रॉब्लम तो नहीं होगा

i have passenger Travel service n my gst registration in Maharashtra i gave service to passenger in Maharashtra to Maharashtra but his gst registration in delhi which gst applicable (sgst cgst or igst)

I have started a travel agency. Proprietary concern. Please advice is GST registration is mandatory in case foreigners book a tour package online and make payment.

Thanks in advance Anu

Kindly provide entries for Foreign currency sold or purchase from clients with GST

CAN TRAVEL AGENT CAN CLAIM GST INPUT ON HOTEL BOOKING. FOR EXAMPLE IF I AM IN DELHI AND BOOK HOTEL FOR MY CLIENTS KEEPING MARKUP OR GETTING COMMISSION OR GETTING BOOKING FEES WHETHER HOTEL IS IN DELHI AND CLIENT LOCATION CAN BE DELHI OR MUMBAI

i have working with travel agent i want to know we i book ticket which gst no i will put in airline agent [my co.]or end corporate user ? please advice me

If a travel agent books all hotels, car/bus/train/flight and activities on Principal basis but still earns certain percentage of TAC (travel agent commission). In such cases what shall be the GST implications? Kindly guide

Sir My client is working as a tour and travel agent and booking ticket/hotel through Agent-Make my trip etc for passanger. Make up trip issued invoice showing breakup of all expenses incurred by him for booking to tickets etc after that charged service charges with gst .kindly guide me how we raise the bill to the passanger and which amount I show in gst return.

I have travel business. my sale and purchase were the same 22 lakhs in last financial year. i am not Gst registered. is there any problem for me?

I have GST no. for my Travel Agency and I have not started working yet Do i still need to pay any GST or any monthly charges

Suppose I do not charge Service Charge from Customer while booking package. Service Charge is that amount on which GST will be charged. Will that Invoice be required to be uploaded in GSTR-1? Otherwise Turnover will not match.

What is the procedure of Commission received from airlines in GST

How much is the limit for tour operator is there any compulsion to take GST no if turn over less 20 L

I, earned commission from Cleartrip Private Limited for booking of Air ticket. Is GST charged on commission? Plz. help.

My client has purchased a tour package from dubai supplier and invoice received from him does not contain any gst, obviously. This package will be further sold by my client afer adding his profit. Is he liable to pay any GST on the Package received from dubai

Sir we booked luxury coach bus traveled from Chandrapur (Maharashtra) to Mumbai (Maharashtra) what will be Gst ? 4 day tour without accommodation. is any circular plz send me.

We are operating our own cruises in the river Ganges in West Bengal and are registered under GST in WB only. We are into the inbound tour for the foreign client companies. We have standard tour itineraries & have written agreements with our foreign clients’ companies for their booked departures. We bill to them directly for their guests for the scheduled cruising, shore excursions etc. We are getting foreign remittance directly into our bank account in India from our foreign client. Being tour operator 5% GST is applicable. My question is, Should we charge IGST or CGST+SGST on our billing to our foreign clients.

Moreover, onboard foreigner guest also spends money on the ship for the paid services like the spa (18% GST), laundry (18% GST), paid alcohol (No GST), shopping at the ship boutique (applicable GST rates) etc. My question is, Should we charge IGST or CGST+SGST on our billing to our onboard foreign guests.

If an agent is merely acting as an intermediary i.e he is paying 8 k to a tour operator and he is collecting 10 k from customer for the purpose of booking of accomodation then what will be the implication

Sir most of the people say that place of Services by Air Travel Agent is the place where the passenger embarks the airplane.

Which view is correct or there is some amendment in the law in this respect as I sent the problem to CBEC.

Sir,Does the agent have to compulsorily register irrespective of turnover under section 24 ? .(agent who performs services on behalf of another )

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HSN Code List & GST Rate Finder

Find HSN / SAC Codes & GST Rates for your goods & services

What is HSN Code?

HSN code stands for “Harmonized System of Nomenclature”. This system has been introduced for the systematic classification of goods all over the world. HSN code is a 6-digit uniform code that classifies 5000+ products and is accepted worldwide. It was developed by the World Customs Organization (WCO) and it came into effect from 1988.

How does HSN code work?

It has about 5,000 commodity groups, each identified by a six-digit code, arranged in a legal and logical structure. It is supported by well-defined rules to achieve uniform classification.

Why is HSN important?

The main purpose of HSN is to classify goods from all over the World in a systematic and logical manner. This brings in a uniform classification of goods and facilitates international trade

HSN Worldwide

The HSN system is used by more than 200 countries and economies for reasons such as:

• Uniform classification
• Base for their Customs tariffs
• Collection of international trade statistics

Over 98% of the merchandise in international trade is classified in terms of the HSN.

Harmonized System of Nomenclature number for each commodity is accepted by most of the countries. The HSN number remains same for almost all goods. However, HSN number used in some of the countries varies little, based on the nature of goods classified.

HSN in India

India is a member of World Customs Organization(WCO) since 1971. It was originally using 6-digit HSN codes to classify commodities for Customs and Central Excise. Later Customs and Central Excise added two more digits to make the codes more precise, resulting in an 8 digit classification.

Understanding the HSN Code

The HSN structure contains 21 sections, with 99 Chapters, about 1,244 headings, and 5,224 subheadings.

• Each Section is divided into Chapters. Each Chapter is divided into Headings. Each Heading is divided into Sub Headings.
• Section and Chapter titles describe broad categories of goods, while headings and subheadings describe products in detail.

For example:

Handkerchiefs made of Textile matters 62.13.90

• First two digits (62) represent the chapter number for Articles of apparel and clothing accessories, not knitted or crocheted.
• Next two digits (13) represent the heading number for handkerchiefs.
• Finally, last two digits (90) is the product code for handkerchiefs made of other textile materials.

India has 2 more digits for a deeper classification.If the handkerchiefs are made from a man-made fibre, then the HSN code is 62.13.90.10.

Structure of HSN Code in India

Services Accounting Code (SAC) in GST

Like goods, services are also classified uniformly for recognition, measurement and taxation. Codes for services are called Services Accounting Code or SAC

Legal documentation and certification services concerning patents, copyrights and other intellectual property rights-- 998213

• The first two digits are same for all services i.e. 99
• The next two digits (82) represent the major nature of service, in this case, legal services
• The last two digits (13) represent detailed nature of service, i.e., legal documentation for patents etc.

HSN codes to be declared up to 31st March 2021:

Declaration of hsn code for goods and services.

HSN codes to be declared from 1st April 2021:

(Vide CGST notification number 78/2020 dated 15th October 2020)

*Annual aggregate turnover for the previous financial year, i.e., for reporting invoice in FY 2021-22, turnover to be referred must be of FY 2020-21.

• These HSN codes must be declared in every tax invoice issued by the taxpayer under GST.
• All 8 digits of HSN code is mandatory in case of export and imports under the GST.

Why is HSN important under GST?

The purpose of HSN codes is to make GST systematic and globally accepted.

HSN codes will remove the need to upload the detailed description of the goods. This will save time and make filing easier since GST returns are automated.

A dealer or a service provider must provide HSN/SAC wise summary of sales in his GSTR-1 if his turnover falls in above slabs.

HSN - wise summary of outward supplies

Chapter wise distribution of goods using hsn codes, how can i find my product in hsn list and its relevant hsn code, what is uqc.

UQC stands for Unique Quantity Code. In simple terms, it is a unit of measurement such as 1 kilogramme of wheat, 1 litre of oil etc.

What is UQC in GST?

As per CGST Rules, any tax invoice, credit note, debit note must have UQC or quantity unit description.

For example-

100 metres of fabric

Refer our article on

UQC for more information.

To minimize errors while filing GST returns, it’s important to know the right HSN code for your product.

Use ClearTax HSN Calculator to find out the HSN code for your product. Our ClearTax GST Software has all the HSN codes inbuilt. You need to select the items you sell only once in the Item Master. Once you are done, your HSN code will be automatically populated in all your invoices and returns.

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Frequently Asked Questions

HSN codes are used for the classification of goods, whereas SAC codes are used for services.

HSN code stands for “Harmonized System of Nomenclature”, a system for the classification of goods world-wide.

As per CGST notification 78/2020 dated 15th October 2020, HSN code must be mandatorily declared as follows from 1st April 2021-

*AATO = Annual aggregate turnover

‘Aggregate turnover’ under GST refers to the aggregate value of all taxable supplies (but excluding the value of inward supplies on which GST is payable on a reverse charge basis), exempt supplies, export supplies, and inter-state supplies of persons that have the same PAN. It is to be computed on an all-India basis and excludes CGST, SGST, UTGST, IGST, and cess.

HSN codes are required to be mentioned on invoices or Bills of Supply, and in the GSTR-1 return.

HSN Codes are typically 6 digit codes. However, in India, we have 8 digit HSN codes where the first two digits represent the chapter number, the next two digits represent the heading number, the following two digits comprise the sub-heading, and the last two digits are the tariff item.

Four digit HSN codes comprise of the chapter number and heading only, whereas six digit HSN codes also comprise of the sub-heading of the product category.

SAC codes stand for Service Accounting Codes. They are similar to HSN codes, but are instead used for the classification of services.

HSN Code is the same as the Harmonised System Code (HS Code) in shipping. However, it is more commonly known as the HSN in India. Like the HS Code list, each of the HSN codes for import and export of goods comprises six digits.

Step 1: Login to the GST portal. Step 2: On the dashboard, go to ‘Services’ > ‘Registration’ > ‘Amendment of Registration Non-core fields’. Step 3: Next, click on the ‘Goods and Services’ tab. Step 4: Click on the ‘Goods’ tab. Step 5: Search for the relevant HSN chapter by entering the HSN code or name of the item. Step 6: Click on ‘Save and continue’. Continue to click on the ‘Save’ button until the verification step. Step 7: Complete the verification and submit via DSC or EVC.

Yes, as per the CGST notification 78/2020 dated 15th October 2020, HSN codes must be mandatorily declared on B2B invoices (4 digit codes) by taxpayers with AATO of up to Rs.5 crore in the previous financial year, while it’s optional for B2C invoices.

Similarly, HSN codes must be mandatorily declared on all invoices (6 digit codes) by taxpayers with AATO of more than Rs.5 crore in the previous financial year.

No, a GST bill will not be valid without a HSN code.

HSN (Harmonized System of Nomenclature) was developed by the World Customs Organisation (WCO) and is used to classify goods. They are similar in the countries that are under the WCO. 6-digit HSN codes are typically used for the goods. However, some countries use 8-digit codes to subclassify goods.

Registered persons under the composition scheme or supplying exempted goods are also required to mention HSN codes as per the above-stated criteria.

• What is HSN Code? • What is HSN Code? >
• How does HSN code work? • How does HSN code work? >
• Why is HSN important? • Why is HSN important? >
• HSN Worldwide • HSN Worldwide >
• HSN in India • HSN in India >
• Understanding the HSN Code • Understanding the HSN Code >
• Structure of HSN Code in India • Structure of HSN Code in India >
• Services Accounting Code (SAC) in GST • Services Accounting Code (SAC) in GST >
• HSN in GST • HSN in GST >
• HSN codes to be declared up to 31st March 2021: • HSN codes to be declared up to 31st March 2021: >
• Declaration of HSN Code for Goods and Services • Declaration of HSN Code for Goods and Services >
• Why is HSN important under GST? • Why is HSN important under GST? >
• HSN - wise summary of outward supplies • HSN - wise summary of outward supplies >
• Chapter wise distribution of goods using HSN codes • Chapter wise distribution of goods using HSN codes >
• How can I find my product in HSN list and its relevant HSN Code? • How can I find my product in HSN list and its relevant HSN Code? >
• What is UQC? • What is UQC? >
• What is UQC in GST? • What is UQC in GST? >

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All HS Codes or HSN Codes for travel with GST Rates

Hsn code 1006.

SCRVS OF SLK MSRNG 60 CM/LESS,HND PRINTED Products Include: Shawls, Scarves, Scarf, Mufflers, Mantillas, Veils

HSN Code 1702

BRUSHES FOR THE APPLICATION OF COSMETICS Products Include: Blender

HSN Code 3926

Articles of plastics and articles of other materials of heading 3901 to 3914, n.e.s. Products Include: Used For Yoga Mat, Artificial Grass, Cotton Hand Gloves, Plastic Water Storage Tanks, Toothpaste Dispenser

HSN Code 4202

Trunks, suitcases, vanity cases, executive-cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling-bags, insulated food or beverage bags, toilet bags, rucksacks, handbags, shopping-bags, wallets, purses, map-cases, cigarette-cases, tobacco-pouches, tool bags, sports bags, bottle-cases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with such materials or with paper Products Include: Yoga Mat

HSN Code 6301

Blankets and travelling rugs of all types of textile materials (excluding table covers, bedspreads and articles of bedding and similar furnishing of heading 9404)

HSN Code 6304

Articles for interior furnishing, of all types of textile materials (excluding blankets and travelling rugs, bedlinen, table linen, toilet linen, kitchen linen, curtains, incl. drapes, interior blinds, curtain or bed valances, lampshades and articles of heading 9404 - Bedspreads) Products Include: Bed Sheets

HSN Code 6309

Worn clothing and clothing accessories, blankets and travelling rugs, household linen and articles for interior furnishing, of all types of textile materials, incl. all types of footwear and headgear, showing signs of appreciable wear and presented in bulk or in bales, sacks or similar packings (excluding carpets, other floor coverings and tapestries)

HSN Code 8308

Clasps, frames with clasps, buckles, buckle-clasps, hooks, eyes, eyelets and the like, of base metal, of a kind used for clothing, footwear, awnings, handbags, travel goods or other made-up articles, tubular or bifurcated rivets, of base metal; beads and spangles of base metal

HSN Code 8426

Ships' derricks; cranes, incl. cable cranes (excluding wheel-mounted cranes and vehicle cranes for railways); mobile lifting frames, straddle carriers and works trucks fitted with a crane

HSN Code 8448

Auxiliary machinery for use with machines of heading 8444, 8445, 8446 or 8447, e.g. dobbies, jacquards, automatic stop motions, shuttle changing mechanisms; parts and accessories suitable for use solely or principally with the machines of this heading or of heading 8444, 8445, 8446 or 8447, e.g. spindles and spindle flyers, card clothing, combs, extruding nipples, shuttles, healds and heald-frames, hosiery needles

HSN Code 8504

Electrical transformers, static converters, and inductors; parts thereof Products Include: Electrical Parts & Electronics, Rectifiers, Wifi Dongles/Adpaters/Smart Card Reader, Copper Lugs

HSN Code 8540

Thermionic, cold cathode or photo-cathode valves and tubes, e.g. vacuum or vapour or gas filled valves and tubes, mercury arc rectifying valves and tubes, cathode ray tubes and television camera tubes; parts thereof

HSN Code 8703

Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excluding motor vehicles of heading 8702)

HSN Code 9508

Roundabouts, swings, shooting galleries and other fairground amusements; travelling circuses and travelling menageries; travelling theatres (excluding booths, incl. the goods on sale, goods for distribution as prizes, gaming machines accepting coins or tokens, and tractors and other transport vehicles, incl. normal trailers)

HSN Code 9605

Travel sets for personal toilet, sewing or shoe or clothes cleaning (excluding manicure sets)

HSN Code 0905

OTHER ARTICLES OF GASKETS WASHERS AND OTHER SEAL Products Include: Sealing Ring, Repair Kit,Silicone Rubber, Adhesive Tape Roll

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HSN Code for Traveling Expenses: What You Need to Know

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Traveling is an essential part of many businesses. Whether it’s attending conferences, meeting clients, or going on business trips, traveling expenses are often incurred by companies. To manage and classify these expenses, the government of India introduced the Harmonized System of Nomenclature (HSN) code system. This system is used to identify and classify goods and services for taxation purposes.

The HSN code for traveling expenses falls under Chapter 99 of the HSN system, which covers miscellaneous services. The HSN code for traveling expenses is 9985. This code covers all expenses related to traveling, including airfare, lodging, meals, transportation, and other related expenses.

When a company incurs expenses related to traveling, they can use the HSN code 9985 to claim tax benefits. The company can claim input tax credit (ITC) on the expenses incurred for business purposes, which reduces the overall tax liability of the company.

It is important to note that the HSN code 9985 only covers traveling expenses incurred for business purposes. If an individual or a company incurs traveling expenses for personal reasons, they cannot claim tax benefits under this code. Moreover, the expenses incurred must be related to the business activity of the company. Expenses related to leisure activities or personal entertainment cannot be claimed under this code.

To claim tax benefits under the HSN code 9985, the company must maintain proper records of the expenses incurred. These records should include receipts, invoices, bills, and other related documents. The company must also ensure that the expenses incurred are reasonable and necessary for the business activity.

The HSN code for traveling expenses is particularly useful for companies that frequently incur such expenses. It helps them streamline their accounting and taxation processes by providing a standardized system for classification and documentation of expenses.

Traveling expenses can include a wide range of costs, including airfare, train or bus tickets, car rental fees, lodging, meals, and other related expenses. These expenses can add up quickly, especially if the company has employees traveling frequently for business purposes. By using the HSN code 9985, companies can ensure that they are accurately accounting for and documenting all traveling expenses, making it easier to claim tax benefits and reduce their overall tax liability.

In addition to using the HSN code, companies can also take advantage of other tax benefits related to traveling expenses. For example, if an employee travels for business purposes and incurs meal expenses, the company can claim a tax deduction for those expenses. Similarly, if an employee uses their personal vehicle for business travel, they can claim a tax deduction for the mileage driven.

To ensure that companies are properly accounting for and documenting traveling expenses, it is important to have clear policies and procedures in place. This can include guidelines for what types of expenses are considered reasonable and necessary, as well as requirements for documentation and approval of expenses.

Table of Contents

Overall, the HSN code 9985 is an important tool for companies that incur traveling expenses for business purposes. By properly accounting for and documenting these expenses, companies can claim tax benefits and reduce their overall tax liability, while also ensuring compliance with government regulations.

Other Related Blogs: Section 144B Income Tax Act

Frequently Asked Questions (FAQs)

Q: What is the HSN code for traveling expenses?

A: The HSN code for traveling expenses is 9985.

Q: What expenses are covered under the HSN code 9985?

\A: The HSN code 9985 covers all expenses related to traveling, including airfare, lodging, meals, transportation, and other related expenses.

Q: Can individuals claim tax benefits under the HSN code 9985 for traveling expenses?

A: No, the HSN code 9985 is only applicable to companies that incur traveling expenses for business purposes.

Q: Can companies claim tax benefits for all traveling expenses incurred?

\A: No, companies can only claim tax benefits for traveling expenses that are reasonable and necessary for the business activity.

Q: What documentation is required to claim tax benefits under the HSN code 9985?

A: To claim tax benefits, companies must maintain proper records of the expenses incurred. These records should include receipts, invoices, bills, and other related documents.

Q: Are there any limitations to the tax benefits that can be claimed under the HSN code 9985?

A: Yes, there are limitations to the tax benefits that can be claimed. The amount of tax benefit that can be claimed will depend on the tax rate applicable to the company and the expenses incurred.

Q: Are there any penalties for incorrect or fraudulent claims under the HSN code 9985?

A: Yes, there are penalties for incorrect or fraudulent claims, including fines and legal action.

Q: Is the HSN code for traveling expenses applicable in all states of India?

A: Yes, the HSN code for traveling expenses is applicable in all states of India as it is a standardized system for classification and documentation of expenses.

Q: Can companies claim tax benefits under the HSN code 9985 for traveling expenses incurred outside of India?

A: No, the HSN code 9985 is only applicable to traveling expenses incurred within India for business purposes.

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SAC 998557 Tourism promotion and visitor information services

SAC (Services Accounting Code) code 998557 is classified under group 99855 (Travel arrangement, tour operator and related services) of GST services classification. Group 99855 is classified under heading 9985 (Support services). You can check GST tax rate on 9985, Support services .

Decoding SAC 998557

Gst on tourism promotion and visitor information services.

We have filtered GST applicable on Travel arrangement, tour operator and related services including GST on Tourism promotion and visitor information services, GST on Support services. You can GST on group Travel arrangement, tour operator and related services by visiting this link.