Indian tour operators operate under specific GST regulations that differ substantially from standard product trading. Misclassifying SAC codes or miscalculating Place of Supply (POS) can trigger severe tax department scrutiny and costly penalties.
Understanding SAC Code 998555
Tour Operator Services fall strictly under Services Accounting Code (SAC) 998555. Under current GST notifications, tour operators can invoice tour packages at an effective GST rate of 5% provided Input Tax Credit (ITC) on goods and services used in supplying the tour is not claimed.
Intra-State vs. Inter-State Tax Calculations
- Intra-State (Client & Agency in same State): CGST (2.5%) + SGST (2.5%) = 5.0% Total.
- Inter-State (Client in different State from Agency POS): IGST (5.0%) Total.
Dynamic UPI QR Code Invoicing
To accelerate payment collection and eliminate reconciliation errors, Travel Navigator generates an NPCI-compliant UPI QR code embedded directly on every invoice PDF. When the client scans with Google Pay, PhonePe, or Paytm, the invoice amount and reference are locked, eliminating incorrect manual transfers.
