Travel HSN Code

Understanding “Travel HSN Code”: A Journey Through Goods and Services Tax

The term “Travel HSN Code” can be a bit misleading because “travel” itself isn’t a single product or service. Instead, it encompasses a wide array of goods and services, each with its own specific HSN (Harmonized System of Nomenclature) or SAC (Services Accounting Code) and associated GST (Goods and Services Tax) rate. Whether you’re a traveler, a tour operator, or a manufacturer of travel-related goods, understanding these classifications is crucial for accurate compliance.

The Two Sides of “Travel” in GST

When we talk about “travel,” we typically refer to two main categories under GST:

1. Travel Services (SAC Codes): This includes everything from booking flights and hotels to organizing tour packages. For services, India uses SAC codes (Services Accounting Codes), which are similar to HSN codes for goods.
   • Tour Operator Services: These are broadly covered under SAC 998555 (Other Travel Arrangement and Related Services N.E.C). Tour operators often have a unique GST structure:
     • 5% GST (without Input Tax Credit – ITC): This is a common option for tour operators offering all-inclusive packages (accommodation, transportation, sightseeing) where they cannot claim ITC on the goods and services used to supply the tour.
     • 18% GST (with ITC): Tour operators can also opt to charge 18% GST on the total value of the supply and claim full ITC on their expenses.
   • Specific Booking Services:
     • Air Ticket Booking (by agents): Commission earned by agents typically attracts 18% GST.
     • Hotel Booking (by agents): Agent commissions on hotel bookings usually also attract 18% GST.
     • Rent-a-Cab Services: These can have varying rates, often 5% or 12%, depending on whether fuel costs are included.
     • Visa and Passport Assistance: Services related to these often fall under 18% GST.
2. Travel Goods (HSN Codes): These are the physical items you take with you when you travel. These fall under various HSN chapters depending on the material and specific item:
   • Luggage and Travel Bags: This is a significant category, predominantly covered under Chapter 42 (“Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)”).
     • Most Trunks, Suit-Cases, Vanity-Cases, Travelling-Bags, etc. made of various materials (leather, plastic, textile materials) generally attract an 18% GST rate.
     • However, some specific items within this category, like certain types of travel bags, might have a 12% GST rate, as seen in the data for HSN 42022220.
   • Travel Sets (for personal toilet, sewing, etc.): These small, packaged kits are typically found under HSN 9605 and attract an 18% GST rate.
   • Travelling Rugs/Blankets: These textile articles fall under Chapter 63 (HSN 6301) and generally have a 12% GST rate, particularly if their sale value exceeds Rs. 1000 per piece.
   • Parts of Travel Goods: Components like clasps and buckles used for travel goods might fall under HSN 8308 (“Miscellaneous articles of base metal”) and typically attract an 18% GST rate.
   • Vehicles for Travel: While not a “travel product” in the luggage sense, vehicles “specially designed for travelling on snow; Golf Cars and similar vehicles” (HSN 87031090) are listed with high GST and CESS, indicating specialized transport.

The GST rates for both travel services and goods have seen revisions since the initial implementation in 2017, reflecting the dynamic nature of tax policies. Always ensure you are referring to the latest notifications from the Central Board of Indirect Taxes and Customs (CBIC) for the most accurate information.