GST applicability on Immigration & Passport Visa Services
Table of Contents
GST applicability on Immigration and Passport Visa Services Consultancy
Starting a visa consultancy business in India can indeed be a rewarding venture. Starting a visa consultancy business requires careful planning, a deep understanding of immigration regulations, and a commitment to providing exceptional service. from GST prospective we needed to understand the following Provision in relation to applicability of GST on these activity.
Passport and visa services are essential for international travel. These services are subject to GST in India, GST rules & rates depending on the service type & GST Services Provider. To determine whether GST applies to your commission for immigration & Passport Services related services, GST taxpayer carefully evaluate the nature of your services and the place of supply to determine the applicability of GST. Consider the following factors:
Nature of Service under Immigration and Passport Visa Services Consultancy :
Passport services encompass the issuance and renewal of passports, as well as related services such as changes to name, address, and other details.
Government Agencies: Passport services provided by government agencies are exempt from GST. Individuals applying for or renewing their passports through a government agency do not pay any GST. who applies for or renews a passport through a government agency will not have to pay GST.
Private Agencies i.e Other than Govt Agency : Passport services provided by private agencies are subject to GST. The applicable GST rate depends on the type of service provided
Visa services include the issuance and renewal of visas, as well as related services such as visa extension and conversion. The GST rules for visa services are as follows:
Government Agencies Visa Services: Visa services provided by government agencies are exempt from GST. Individuals applying for or renewing their visas through a government agency do not pay any GST. This means that anyone who applies for or renews a visa via a govt agency will not have to pay GST.
Private Agencies Visa Services : Visa services provided by private agencies are subject to GST. The applicable GST rate depends on the type of service provided.
Intermediary Services: If you are acting as an intermediary (e.g., connecting clients in India to foreign entities for immigration-related services), the place of supply for intermediary services is the location of the supplier of services (i.e., India). So GST would be applicable.
Definition of intermediary includes any broker, agent, or any other person who arranges or facilitates the supply of goods or services or both between two or more persons.
Direct Services: If you are providing direct services (e.g., visa processing, paperwork assistance) to clients, the place of supply needs to be determined based on specific rules under GST law.
If these services are provided to a recipient outside India and meet the criteria for export of services, they may be zero-rated, meaning no GST would be charged, but input tax credit can be claimed. If the services are provided to clients within India, standard GST rates would apply.
Place of Supply under immigration & Passport Services related services:
Domestic Supply:
If the substantial part of the service is provided in India, it is considered a supply within India, and GST would apply.
-
- Intermediary Role: You connect an Indian client with a foreign immigration consultancy firm. Place of supply is India. GST at 18% would be applicable on your commission.
- Direct Service to Indian Client: You assist an Indian client with immigration paperwork for a foreign country. Place of supply is India. GST at 18% would be applicable on your commission.
Export of Service:
If the service qualifies as an export of services, it may be zero-rated. The criteria for a service to be considered as export are:
-
-
- The supplier is located in India.
- Recipient is located outside India.
- The place of supply is outside India.
- Payment for such service is received in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India.
- The supplier and recipient are not merely establishments of a distinct person (i.e., they are not branches or offices of the same company).
-
-
- Direct Service to Foreign Client: You assist a client based outside India with visa processing. If it qualifies as an export of services (as per the criteria mentioned), the service can be zero-rated. If it does not qualify as export, GST would be applicable.
- If your services are deemed intermediary services with the place of supply in India, GST will be applicable. For direct services, ensure that they meet the criteria for export of services to benefit from zero-rating under GST.
GST Compliance for Businesses Providing Passport and Visa Services
- Passport and Visa Services provider Obtain GST Registration, It is mandatory for businesses providing passport and visa services to obtain GST registration. This involves getting a unique GST identification number required for filing GST returns and paying GST.
- Regular Filing: File GST returns regularly. GST returns are periodic statements that businesses must submit to the government, detailing their taxable supplies, inputs, and input tax credits. Filing must be done by the due date specified in the GST laws. Maintain proper records of all transactions related to your business, including GST charged and paid. This helps in filing accurate GST returns and avoiding discrepancies.
- GST Rates: Charge GST at the applicable rate on passport and visa services. Ensure that the GST amount is mentioned separately on the invoice or receipt.
- Issuance of Fresh Passport: 18%
- Renewal of Passport: 18%
- Issuance of Visa & Renewal of Visa: 18%
- Miscellaneous Services (e.g., visa extension, conversion, change of name, address): 18%
SAC Code for Services Provided Immigration Services for Visa Application & Visa Consultancy Services
In case of Government Services:
- Services provided by the Central Government, State Government, Union territory, or local authority by way of issuance of passport, visa, driving licence, birth certificate, or death certificate are exempt from GST under SAC 9991.
If Using Private Agencies:
- the applicable SAC codes and GST rates for their services are as mentioned above.
Immigration Services for Visa Application
-
- Service Description: Services related to immigration, including visa application assistance.
- SAC Code: 998559 (Other travel arrangement and related services nowhere else classified)
Visitor Visa Services
-
- Service Description: Services related to obtaining visitor visas.
- SAC Code: 998559 (Other travel arrangement and related services nowhere else classified)
Visa Consultancy Services for Students Visa for Foreign Studies
-
- Service Description: Consultancy services for obtaining student visas for foreign studies.
- SAC Code: 998559 (Other travel arrangement and related services nowhere else classified)
Coaching Services for IELTS, TOEFL, etc., to Students Who Want to Study Abroad
-
- Service Description: Coaching and training services for exams like IELTS and TOEFL.
- SAC Code: 999293 (Commercial training and coaching services)
**********************************************************
If this article has helped you in any way, i would appreciate if you could share/like it or leave a comment. Thank you for visiting my blog.
Legal Disclaimer:
The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. The information / articles and any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, i can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information / articles contained without first seeking the advice of a practicing professional.