Managing corporate travel expenses is no small task, especially when it comes to understanding and utilizing GST (Goods and Services Tax) bills. With GST playing a pivotal role in streamlining taxation and enabling Input Tax Credit (ITC), businesses can unlock significant cost savings when travel expenses are GST-compliant.

In this comprehensive guide, we’ll explore how GST impacts corporate travel, the benefits it offers, and how AtYourPrice (AYP) simplifies GST compliance for business travellers.

What Is GST and Its Role in Corporate Travel?

Introduced as a unified tax regime in India, Goods and Services Tax (GST) replaced a host of indirect taxes, ensuring a simpler and more transparent taxation system. For corporate travellers, GST applies to nearly all travel-related expenses, such as flights, hotels, cabs, and dining.

By leveraging GST-compliant bills, businesses can claim Input Tax Credit (ITC), which offsets their GST liability, thereby reducing overall travel costs. However, businesses must ensure strict adherence to GST compliance to maximize these benefits.

Key Components of a GST-Compliant Invoice

To claim ITC, a GST-compliant invoice is mandatory. Here’s what it must include:

1. Supplier and Recipient GSTIN: Both the vendor’s and your company’s GST Identification Numbers.
2. Invoice Details: Unique invoice number and date of issue.
3. Service Description: Clear mention of services like flights, hotels, or cabs.
4. HSN/SAC Code: Harmonized System of Nomenclature (HSN) or Service Accounting Code (SAC) classification.
5. GST Tax Breakdown: Details of CGST, SGST, and IGST, if applicable.
6. Total Taxable Amount: Along with applicable GST.

Without a GST-compliant bill, companies risk losing out on ITC benefits.

How GST Applies to Corporate Travel Services

Air Travel

• Domestic economy flights attract 5% GST, while business class is charged 12% GST.
• International flights originating from India are GST-exempt.

Hotel Accommodations

• No GST for tariffs below ₹1,000.
• 12% GST for tariffs between ₹1,001 and ₹7,500.
• 18% GST for tariffs above ₹7,500.

Transportation

• Services like cabs and car rentals levy 5% GST, while luxury transport may attract higher rates.

Dining and Events

• AC restaurants charge 18% GST, while non-AC ones levy 5% GST.
• Conferences and event services typically incur 18% GST.

Benefits of GST for Corporate Travellers

1. Input Tax Credit (ITC)
   Businesses can claim ITC on GST-compliant travel bills, leading to considerable cost savings.
2. Simplified Taxation
   GST eliminates the cascading effect of taxes, consolidating multiple taxes into one. This ensures easier compliance and transparency.
3. Optimized Travel Budgets
   With ITC, companies can reduce their tax liability and optimize their travel spending without compromising employee convenience.
4. Easier Expense Tracking
   GST-compliant invoices provide structured data for accurate financial reporting and audit trails.

Challenges in Managing GST for Corporate Travel

1. Non-Compliant Vendors: Many vendors do not issue GST-compliant invoices, making it difficult to claim ITC.
2. Complex Reconciliation: Handling multiple invoices across vendors can be tedious and error-prone.
3. Lack of Awareness: Employees may inadvertently make bookings with non-compliant vendors, leading to compliance issues.
4. Manual Processes: Traditional methods of GST tracking are time-consuming and prone to errors.

How AtYourPrice Simplifies GST for Corporate Travel

AtYourPrice (AYP) is designed to eliminate the challenges associated with GST compliance, providing businesses with a seamless travel management solution.

GST-Compliant Booking

Every flight, hotel, and cab booking made through AYP includes GST-compliant invoices, ensuring maximum ITC eligibility.

Integrated Travel Management

From flights to hotels and cabs, AYP consolidates all bookings under one platform, simplifying GST tracking and reconciliation.

Automated Reporting

AYP provides real-time GST reports that enable businesses to track their tax credits and manage audits effortlessly.

Policy Enforcement

AYP ensures all bookings adhere to corporate travel policies, flagging non-compliant transactions automatically.

Low Fare Recommendations

In addition to GST compliance, AYP offers cost-saving tools like Low Fare Recommendations, helping businesses save up to 8% on travel costs.

Best Practices for GST Compliance in Corporate Travel

Centralized Travel Bookings

Use a single platform like AYP to manage all travel bookings and ensure GST compliance across the board.

Educate Employees

Train employees about the importance of GST-compliant bills and provide them with a list of approved vendors.

Automate Expense Tracking

Leverage AYP’s integrated tools for automated GST tracking and reporting.

Audit Regularly

Conduct periodic audits to ensure all travel expenses align with GST compliance standards.

Conclusion

Navigating the complexities of GST doesn’t have to be overwhelming. By adopting the right tools and practices, businesses can streamline their travel management processes, optimize costs, and ensure full compliance.

With AtYourPrice, managing GST for corporate travel becomes simple and hassle-free. Whether it’s generating GST-compliant invoices or tracking Input Tax Credit in real time, AYP delivers a comprehensive solution for your travel needs.

📞 Want to simplify GST for your corporate travel? Connect with us today!