Definition
Goods and Services Tax charged by Indian tour operators on holiday packages, usually 5% of the full package value. On overseas packages, 2% TCS is collected on top. You can claim the TCS back in your ITR; individual travellers cannot recover GST.
How GST applies
Most Indian tour operators charge 5% GST on the total package price, under the tour-operator rate that does not let them claim input tax credit. A few charge 18% with input tax credit, mainly on corporate travel. GST applies to domestic and international packages sold by an Indian company.
If you book components yourself, each carries its own tax: flights and hotels in India have their own GST rates, while foreign hotels booked directly charge local taxes instead.
GST vs TCS
| GST | TCS | |
|---|---|---|
| What it is | Tax on the service | Advance income tax |
| Rate on an overseas package | Usually 5% | 2% |
| Can you get it back? | No, unless a business claims credit | Yes, through your ITR |
| Applies to domestic packages? | Yes | No |
Example
A Hyderabad couple books a ₹2,00,000 Bali package with flights.
- Package price: ₹2,00,000
- GST at 5%: ₹10,000
- TCS at 2%: about ₹4,000–4,200, depending on whether the operator calculates it before or after GST
- Total payable: about ₹2.14 lakh, of which the TCS comes back through their ITR
Practical advice
- Ask whether a quote is plus GST or inclusive of GST. On a ₹4 lakh Europe tour, the difference is ₹20,000.
- Check that the invoice shows the operator's GSTIN.
- Companies booking MICE or corporate trips should ask for an invoice that supports input tax credit where eligible.
- Compare like with like: a cheaper-looking quote may simply leave out GST, TCS or city taxes.
See TCS on foreign travel for how the 2% works, and our travel guides for budgeting an overseas trip.