GST Bill In India: A Complete Guide For Business Travellers!

Introduced to simplify the complicated tax system in India, GST or the Goods and Services Tax has reformed the taxation mechanism. This consolidated tax replaced all indirect taxes to make the Indian economy stronger and more powerful. In this article, we learn more about the GST bill and how to make the most of it for corporate travel with Input Tax Credit. So, read on:

 

Since the implementation of the Goods and Services Tax in 2017, the GST Council meetings continues to introduce new changes through GST bills. These bills consistently revolutionize the taxation system in India, while also making the process a lot simpler for taxpayers across the country. The new tax regime has been important as it manages to introduce a single tax umbrella, building international confidence in the Indian goods and services. It has also increased the ease of doing business both within and outside the country due to a common taxation scheme. Let us understand it in a little more detail:

What is GST Bill?

The Goods and Services Tax Bill aims to unify all the taxes that were paid on goods and services within India. Before the introduction of this uniform system of taxation, individuals paid more than one type of tax on a single product or service. However, ever since the inception of GST, it has managed to streamline these different taxes into one, consolidated tax. The different types of GST imposed on goods and services are:

1. Central GST: Since the GST implementation, Central Excise Duty, Additional Duties of Excise, Special Additional Duties of Customs, Service Tax, and other taxes were replaced by CGST.
2. State GST: VAT Entry Tax, Entertainment Tax, Purchase Tax, State surcharges, and more were replaced by SGST after the introduction of the new taxation regime.
3. Integrated GST: The IGST is imposed by the Central government on inter-state supplies or inter-state sellers.

 

Here are some important points to remember with respect to the GST Billing:

• Under the GST regime, the taxes that have to be paid for all the intra-state supplies are the Central GST (CGST)and the State GST (SGST). 
• For inter-state supplies, one has to pay the Integrated GST (IGST). 
• The CGST is collected by the Central government.
• The SGST is collected by the State government. 
• Some GST-registered taxpayers, mostly e-commerce operators are required to pay the TDS (tax deducted at source) and also the TCS (tax collected at source) on the GST invoice bill. 

 

How To Get GST Bill Payment? 

The GST payment can be made in two ways:

1. Through credit ledger- Suppliers can claim Input Tax Credit (ITC) while paying the tax. The Input Tax Credit cannot be availed for interest, penalties, or late fees.
2. Through cash ledger- GST payments can be made through online and offline modes. 

 

A regular taxpayer has to make payments on a monthly basis by the 20th of every subsequent month.

 

Travel GST Rate Calculator

With the GST tax calculator, a taxpayer can calculate the overall cost of a product or a service and easily fill their GST invoice. 

 

GST Amount = (Original Price x GST Rate) / 100   Net Amount = GST Amount + Original Price

 

 

GST Amount = Original Price – (Original Price x (100 / (100 + GST Rate)))  Net Amount = Original Price – GST Amount

Business Travel GST:

GST can directly impact business travellers since the GST rates are applicable to the different modes of transportation and accommodation used by them. This information is vital for the tours and travels GST bill format. So, here is a breakdown of GST imposed on the different travel needs of a corporate traveller:

 

GST Applicable on Domestic Air Travel-

Under the new GST regime, budget travel will be more economical, while the slight increase in business class fares is marginal and would not deter corporate travellers from business travel. Moreover, GST input on flight tickets can help companies reduce their tax liability. Here are the new tax slabs for flight tickets under GST:

 

Cabin Class or Type	GST Rate Applicable
Economy Tickets	5 %
Business Class Tickets	12 %
Chartered Flights or Aircraft Rentals	12 %

*Economy class tickets to and from Northeast states and Bagdogra are exempted from GST, effective as of July 18^th, 2022. 

 

GST Applicable on Hotel Accommodation-

The GST has unified the multiple taxes imposed on hotel stays, simplifying business travel and budget management. Corporates can therefore now avail of ITC under GST on hotel rooms and enjoy greater savings. Here are the new tax slabs for hotel bookings under the new taxation system:

 

Amount per person/per room (1 Night)	GST Rate Applicable
Less than INR 1,000	12 %
INR 1,000 – INR 2,499	12 %
INR 2,500 – INR 7,499	12 %
INR 7,500 and above	18 %

*New GST rates as of 2023, incorporated. 

 

How to Claim Input Tax Credit for Your Business Travel?

GST bill can be helpful for corporates as it can help companies make greater savings by claiming their input GST credit. The Input Tax Credit can significantly reduce the tax paid on sales or the tax you have already paid on the purchase. So, let us understand the impact of GST on Business travel.

 

GST Input Tax Credit on Flight Tickets:

Corporate travel is an integral part of any business whether it is a larger corporate organisation or MSME. Moreover, the expenses incurred on it are one of the highest. With the help of GST credit on air fare, however, businesses can claim returns on their expenditure. 

By claiming the ITC through GST-compliant invoices, Economy and Business class travel tickets can become cheaper. Let us understand how through an example-

If the tax paid on the sale of goods = INR 500

The tax paid already when the employee made a travel = INR 400 

Therefore, the company can claim an ITC in GST of INR 400, thereby only paying INR 100 as tax.

 

GST Input Tax Credit on Hotels:

Companies can claim Input Tax Credit under GST on hotel accommodations of their employees under certain specific conditions. ITC of CGST and SGST is possible if the hotel is in the same state as the employee. For example, if an employee from Pune goes for a business trip to Mumbai. The hotel is likely to impose a SGST and CGST on the final billing having the GSTIN. The registered company can therefore claim for an ITC on the GST paid.

 

Conditions to Claim the Input Tax Credit

A GST-compliant invoice can help businesses avail ITC on business travel. myBiz is the perfect platform that can help by offering specially curated business solutions and making a company GST ready, ensuring that they avail of all the tax benefits. Here is what is required to claim the credit note in GST:

 

• GST-compliant invoice from airline
• GST-compliant invoice from travel solution provider
• Company’s GSTIN
• Company’s registered contact number
• Company’s registered billing address
• Company’s registered email address
• Travel solution provider’s GST number for input GST

 

GST Bill format

GST invoice is issued by a registered supplier, and the tax invoice format must contain the following information:

 

• The supplier’s name, address, and GSTIN.
• If the invoice is a tax invoice, revised or supplementary invoice.
• A GST tax invoice number, that is specific to a financial year.
• Issue date.
• The recipient’s name, address, and GSTIN.
• HSN (Harmonised System of Nomenclature) code and the SAC (Services Accounting Code). The HSN code is for goods and the SAC is for services.
• Goods and services description.
• The number of goods and services.
• The supply’s total value.
• Each item’s tax rate.
• CGST, SGST, and IGST tax amounts must be shown in separate columns.
• Name of the state which is supplying and the place that supplies.
• Delivery address if the place of supply is different.
• There should be a statement that mentions whether reverse charges are applicable or not.
• A digital signature of the supplier or an authorized person for the GST bill online.

 

GST filing and claiming the GST Input credit can be a complicated process. However, business travel solution providers can help reduce this burden significantly. Make the most of tax benefits by complying with the GST norms with the help of myBiz which can prepare your business for GST-related issues.

 

GST filing can be easier with assured GST invoices on business travels with myBiz. So, sign up for a lifetime free subscription today. Join now!

Frequently Asked Questions (FAQs)

 

Q1. Can GST returns be filed online?

Ans. Yes, GST return filing can be done online by visiting the GST portal at: www.gst.gov(dot)in/

 

Q2. What is GSTIN?

Ans. GSTIN stands for GST Identification Number. It is a unique 15-digit identification number for every business under the new tax regime. 

 

Q3. Is it important to have the company registered before claiming the Input Tax Credit on GST?

Ans. Yes, the company’s unique GST identification ID or GSTIN is required for claiming the ITC on travelling expenses.

 

Q4. What is required to file GST returns on business travel?

Ans. The travel GST bill format requires GST-compliant sales and purchase invoices, which are necessary to file returns. myBiz is therefore an ideal partner for business travel as it offers assured GST invoices.

Related Blogs:

• •  Implications of GST on Bus Tickets and Input Tax Credit
• •  Everything About GST on Hotel Rooms and Input Tax Credit
• •  Understanding GST Bill Inclusions for Easy ITC Claim
• • GST on International Flight Tickets and Input Tax Credit: A Complete Guide!
• •  All You Know About GST and Its role in Travel Industry
• • GST Registration: A Step by Step Guide For Small Businesses