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Are you planning a holiday to Kerala and looking to book hotels through online travel portals? Many online sites give you price comparison of best hotels in Kerala and you may think that this is the cheapest price available. If you think that this is the last stop from where you get discount, it’s wrong and you may get more discounted prices from local Kerala Tour Agents. This is because of the new rules and regulations about payment of taxes etc after the implementation of General Selling Tax by Govt from 01 July 2017.

Srees Tours, a local travel agent in Kerala, committed to give all the details about “how to book Hotels In Kerala on cheapest price”.

Please note that this is applicable for those hotels whose room billing rate is more than Rs 2500 and above. To know this, we need to know the tax structure of the hotels. Please see below tax table chart.

Hotels chargesTax payable by hotels
Tax discount available to Kerala Travel agents (Generally call tax input)
Upto Rs 999No tax
Nil
1000–2499
12%
18%
2500 - 7499
18%
18%
7500 onwards
28%
18%

As per the GST rule, the tax is applicable for the bill generated by the hotel irrespective of what they have displayed in their web site. As per the tax table mentioned above, hotels bill exceeds Rs 2500 attract 18% GST on bills and this tax is already included in the hotel bill. When travel agents prepare the bill, they can choose either 5% or 18% GST on bills. In case they choose 18% GST billing on hotels in kerala, since hotel bill is already having 18% GST included, the input tax available for travel agent is 18% and summarily they need to pay 18% GST only for the profit they generated from the hotel bookings.

How the input tax is claimed? Please see below example.

Hotel Name
Room Rate
GST included
Local Agent Billed to Guest
Out station Agent Billed to Guest
Misty Mountain Resort, Munnar
Rs 3000
Rs 540 (18%)
Rs 3000 + 300 (Profit) + 18% GST = Rs 3894
Rs 3000 + 300 + 5% GST = Rs 3465.

When a Room is booked through a local agent, the actual liability of the agent is Rs 3894 minus Rs 540 = Rs 3354. That is, when a local agent can give the room for Rs 3354, where as an outstation agent will given the same room to a guest for Rs 3465, an increase of Rs 111 per room per night.

Here you may have a doubt as to how Kerala Travel Agents get 18% tax input as discount. As per the new GST rules, respective destination agents, who is having a GST registration and number within the respective destination, need not pay tax for the room selling, since the hotels is already paying. We can give you more clarity on this – like if Srees Tours is having a registered office in Kerala with a GST registration number, Srees tours does not need to charge GST from our clients but needs to pay tax only for the profit generated, provided the respective hotel is issued a bill. This is applicable to all respective travel agents located in each state. That means, in case an agent located in Mumbai or Delhi, book a hotel in Kerala for their client, this benefit will not be applicable for them.

How the guest benefited when book through a local travel agent in Kerala? To know this, we need to know how a travel agent is billing to their guest. Suppose guest “XYZ” located at Delhi booked a luxury hotel package with a “ABC” travel agent in Delhi as well as in Kerala, below is the billing details

Summary of package : 01 & 02 Dec 2018, 2 night Munnar Fragrant nature resort, 5 star resort with B/F.

Local Kerala Agent

 Travel Agent who does not have a GST and Regd office In Kerala Online Portals Rate as on :  
Fragrant nature with 10% profit20900
Fragrant nature with 10% profit
20900
Go ibibo
+ invoice with 18% GST
24662
+ Invoice with 5% GST
21945
Makemytrip
Billed to guest with 18% GST discount21242
Billed to guest
21945
Trivago lowest price

In a simple calculation, a 2 night 3 days Kerala tour package cost Rs 700 cheaper while comparing local and outstation travel agents. Online portals are always higher if not they given a special coupon discounts. Most of the Travel agents are located outside Kerala used to book their hotels through a local operator in Kerala, which makes a tour package more costlier than a local agent of Kerala.

Did You Know??? All your room rates are inclusive of Breakfast which is inclusive of 18% GST on food. Did you know any travel agent give this back to you? Srees Tours is committed to reduce on all Kerala trips and used to give a bottom line price.

5 Simple steps to find out correct and discounted rate on your Kerala hotel bookings

• Identify your hotels first or contact Srees Tours, we will give a free advice without any obligations.
• Take quote from a native travel agent and a local Kerala Travel Agent.
• Compare prices of both and then check online price also.
• When checking the online price, proceed till payment as most of the online sites hide tax on their display rate.
• If you find that a local Kerala Travel Agents rate is cheaper, choose a travel agent who is accredited with Kerala Tourism.

When you book a package through a responsible travel agent like Srees Tours, apart from getting a cheaper rate, you will also look after well in Kerala. We may even some time upgrade your room to a higher category, an early check in or late check out, given an extra discount on spices purchased, a driver who take care well.

Brief Take Away

The best deals for hotels in Kerala can be found from local tour operators. It is always a good option to make a informed choice so we recommend you to multiple tour operators as well as check online before completing the booking. Kerala is a beautiful place to visit and has many tourist attractions. Have a luxurious stay at one of the best ever price on hotels in kerala.

To find out more details or discuss your queries and concerns, Call us now or you could also comment down below.

We are here to help!

Note: Please note that the information provided in this article is best of our knowledge as per the information we received from our CA / CS consultant. Here we are not claiming any law or regulation. Please consult authorized practitioner for more information about GST law and how input tax credit is calculated.