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Corporate Travellers Must Give Employer Details for Tax Credit
GST invoices to be shared with cos every month, which can be used to claim benefits. Airlines have written to its corporate travellers to register their companies’ or employers’ GST number to claim a tax credit.

Corporate travellers form a significant chunk of the air traffic in India. They comprise between 30% and 45% of passengers of a lowcost airline and up to 60% for a full service airline. GST of 5% has been levied on economy-class airline tickets and 12% is charged on business class.

“It is mandatory for guests travelling for business to add their company’s GST details at the time of booking. To ensure a seamless experience, we request that you inform your guests travelling for business to register on our portal and claim up to 12% back on flights," Jet Airways said in the letter to its registered passengers.

“After registering, simply add your guest’s GST number every time you make a booking, and all other GST related details will automatically be added to your reservation,” said the airline. Passengers who have not added their GST number at the time of booking may do so within 72 hours of booking their ticket or before their flight departure,whichever is earlier, the airline said.

GST invoices will be shared with the passengers’ companies monthly, which can then be used to claim GST benefits.IndiGo and Vistara sent similar emails to their passengers.

The government since yesterday implemented a new tax structure which seeks to to replace at least seven indirect tax heads.“Earlier too the companies could claim a tax credit for employees’ corporate travel,” said M Shiv kumar, controller at Jet Airways. “The airline then provided a certificate to the corporates with the service tax details against which credit was availed. Now, all the data led by the GST number will be fed into the GST network along with tax invoice details. Corporate entities can then track the transaction in the system and claim credit for the same, which effectively means physical document per se is not adequate unless the same is uploaded in the GST network system,” he added.

“Also in the case of airline travel, service tax was extremely difficult to claim and led to litigations sometimes. Now, it would be much easier,” said an independent chartered accountant on condition of anonymity.Physical document not adequate unless the same is uploaded in the GST network system

The Economic Times New Delhi, 03rd July 2017

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