Karnataka GST Advance Ruling KAR.ADRG 39/2026: Application Withdrawn
The Authority for Advance Ruling closed this case because the business withdrew its request before a decision was made.
- Ruling
- KAR.ADRG 39/2026 Dated: 06.07.2026
- Dated
- 06 Jul 2026
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Quinta Systems asked about GST on travel agency services.
- The company later requested to withdraw the application.
- The business vertical in question was discontinued on March 31, 2026.
- The Authority provided no rulings on the tax questions asked.
In short
Quinta Systems asked the Karnataka Authority for Advance Ruling (AAR) for clarity on how to pay GST on travel services, including flight and hotel bookings. Before the authority could answer, the company asked to withdraw the request because they stopped that line of business. As a result, the authority closed the file without giving any advice or legal interpretation.
What has changed
How it worked before
Businesses often seek advance rulings to get certainty on how to tax new services before they launch them.
What has changed
Nothing changed. Because the application was withdrawn, the authority did not issue any guidance on HSN codes, input tax credit, or tax rates for travel services.
Who this affects
Travel agencies or businesses planning to enter the travel sector who are looking for official guidance on GST compliance.
What you should do
Do not use this order as a reference for your own tax planning. An advance ruling only applies to the specific business that asked the question, and since this one was withdrawn, it contains no legal guidance at all.
If you do nothing
If you assume this order provides a tax rule, you risk applying the wrong GST rate or claiming incorrect input tax credits. Tax officers are not bound by withdrawn applications and may penalize you for following non-existent guidance. Always seek professional advice based on current law rather than relying on closed or withdrawn cases.
The terms explained
- Advance Ruling
- A formal decision from tax authorities that clarifies how GST applies to a specific business transaction.
- Input Tax Credit
- The tax a business pays on its purchases that it can use to reduce the tax it owes on its sales.
- HSN Code
- A standardized system of numbers used to classify goods and services for GST taxation purposes.
The ruling in detail
Authority for Advance Ruling
M/s Quinta Systems Pvt. Ltd.
KAR.ADRG 39/2026 Dated: 06.07.2026 · Karnataka
Questions before the authority
- For the transaction values for Air Fare charges and hotel bookings whether we need to book the revenue as Actual Flight Charges (or hotel Charges) + Commission = as our revenue or we need to book the commission only as our revenue?
- Due to competency of the business we need to provide the discounts to customers, are there any GST Taxes implications are there?
- What is the HSN code for Air Ticket Booking Commission, Tax implications i.e. Tariff rate?
- What is the HSN code for hotel (boarding and lodging services) Booking commission, Tax implications i.e. Tariff rate?
- What is the HSN code for Holiday packages, Tax Tariff implications i.e. Tariff rate and are we eligible to take Input tax Credit (ITC) against our corresponding bookings with hotel bookings, flight charges and other ancillary services partners.
- What is the GST implications overseas sales of hotel booking, Travel ticket Holiday packages?
- In aforesaid business any RCM are applicable?
- Since we will be using common GSTIN for both business vertical i.e. trading the computers and peripherals and travelling business, can we generalize the input credits setoffs to both the line of business or we have to consider them separately?
- Any GST TCS required to deduct to our travel vendors?
Facts
The applicant is engaged in the trading of computer hardware and software. They proposed to expand into travel agency services under the brand name Qugo, involving arrangements with airlines, hotels, and travel aggregators for B2B services. Subsequently, the applicant requested the withdrawal of the advance ruling application, stating the business vertical for which the ruling was sought had been discontinued.
Ruling
The Authority for Advance Ruling disposed of the application as withdrawn. No substantive rulings were provided on the questions raised by the applicant.
Reasoning
The applicant submitted a letter dated 01.07.2026 requesting the withdrawal of the present Advance Ruling application. They stated that the business vertical in respect of which the ruling was sought had been discontinued effective 31.03.2026. Consequently, the Authority accepted the request and disposed of the application as withdrawn.
Provisions relied on
- Section 97 of the Central Goods and Services Tax Act, 2017
- Section 98(2) of the Central Goods and Services Tax Act, 2017
- Rule 104 of the Central Goods and Services Tax Rules, 2017
For the practitioner
This order provides **no guidance** on the taxability of travel agency services or the specific questions raised by the applicant. It serves only as a record that the application was **withdrawn by the applicant** due to the discontinuation of the proposed business activity. Practitioners should note that this order has no precedential value regarding the merits of the questions asked.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/12-quinta_systems_pvt_ltd.pdf
Legibility of the scan, as read: high.
Prepared 11-10-2026.
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