How to Work in the Travel Industry from India: Every Scenario Explained (2026)

Quick answer: You can work in the travel industry from India in four broad ways: as an employee (of an Indian or foreign travel company), as a freelancer serving foreign travel agencies, as the owner of an Indian travel business (agency, IATA agent, outbound or inbound tour operator, DMC, MICE), or by selling travel and travel services to foreign customers (often through a US LLC). No national licence is required to start a travel agency in India; Ministry of Tourism approval and IATA accreditation are optional but open doors. What changes from one scenario to the next is tax: GST of 5% without input credit or 18% with it for tour operators, a flat 2% TCS on overseas tour packages since 1 April 2026, export-of-services rules for anyone paid from abroad, and US seller-of-travel laws if you sell to Americans.

Who this guide is for

This guide is written for Indian residents who want to earn from travel: ticketing staff thinking of going independent, travel agents who want foreign clients, tour operators selling Dubai, Bali or Europe packages, DMCs bringing foreigners to Rajasthan or Kerala, freelancers supporting US travel advisors, travel creators earning affiliate income, and founders building travel software. We cover 14 real scenarios, then the rules that cut across all of them: GST, TCS, FEMA and getting paid, US seller-of-travel laws, and payment processors.

A note on our angle: USBizGuru forms US LLCs for Indian founders. A US company genuinely helps in some of the scenarios below and is pointless in others. We say which is which.

The 14 scenarios at a glance

Part 1: Working for someone else

Scenario 1: A job at an Indian travel company or travel-tech centre

The simplest route. India has large online travel agencies, travel management companies that handle corporate travel, airlines, hotel chains, cruise sales offices and consolidators. Global travel-technology companies such as Amadeus and Sabre also run big engineering and operations centres in Bengaluru and other cities.

• Roles: reservations and ticketing, fare and GDS specialists (Amadeus, Sabre, Galileo), holiday consultants, visa and documentation desks, corporate travel account managers, revenue management, product and engineering.
• Skills that pay: GDS fluency, fares and ticketing (reissues and refunds), destination knowledge, and a second language for inbound desks.
• Paperwork: none beyond a normal job. Your employer deducts TDS on salary.

Many people in the later scenarios start here. Two or three years on a ticketing or holidays desk is the best training for running your own agency.

Scenario 2: A remote job with a foreign travel company

US, UK, Australian and Gulf travel companies hire Indians remotely for support, trip planning, fare desks and content. How you are hired decides your paperwork:

• Through an Employer of Record (EOR) or Indian subsidiary: you are a regular Indian employee on payroll, with salary TDS, PF and payslips. Nothing extra for you to manage.
• As an independent contractor: you are legally running a business that exports services. You invoice, you receive foreign currency, and the rules in Scenario 3 apply to you even if the job feels like a job.

Watch out: a remote job never comes with a US work visa, and you cannot physically work in the US on a B1/B2 visitor visa. Working from India for a US company is legal; working from a US hotel room on a tourist visa is not.

Scenario 3: Freelancer for foreign travel agencies and advisors

This is one of the fastest-growing routes. Thousands of independent travel advisors in the US work alone and outsource the time-consuming parts to India:

• Itinerary research and design, and proposal decks
• Booking support on supplier portals, and GDS work for ticketing desks
• Virtual assistant work: email, CRM, client documents, invoicing
• Social media, blog and newsletter content for the advisor’s brand
• Group and cruise booking administration

How the law sees you: you are exporting services from India. That means:

1. Payment through banking channels in foreign currency, with the right purpose code, and a FIRA or bank advice for every receipt. Use our RBI purpose code lookup to pick the right code.
2. GST: registration is needed once your turnover crosses the threshold (generally Rs 20 lakh for services). Exports of services are zero-rated: file a Letter of Undertaking (LUT) and invoice without GST.
3. Good news from 2026: if you arrange bookings on behalf of a foreign agency, you may be an “intermediary”. Until this year, intermediaries could not treat their work as an export, so 18% GST applied. The Finance Act, 2026 omitted that rule (section 13(8)(b) of the IGST Act), so qualifying intermediary services are now located where the foreign client is and can be exports. Confirm the effective date and your own facts with your CA.
4. Income tax: taxed in India as business income. Small freelancers often use presumptive taxation; ask your CA which scheme fits.

Does a US LLC help? Sometimes. If your clients are happy paying an Indian freelancer via wire or Wise, you do not need one. If US agencies insist on a W-9 vendor, ACH payments, or a US contract counterparty, or you are growing into an agency with several staff, a US LLC can make you look and get paid like a local vendor. See our page for freelancers.

Scenario 4: Home-based agent under a host, franchise or OTA affiliate

You sell travel to your own network (family, community, corporate contacts) using someone else’s supplier contracts and booking engine. In India this is usually a B2B portal or consolidator login, a franchise of a larger agency, or an affiliate link from an OTA.

• Income: commissions or a markup on what you sell. It is business income in your hands.
• GST: once you cross the threshold, you register and charge GST on your commission or service fee.
• Risk: you depend on the platform’s terms. Read the payout timelines and cancellation and refund policy before you sell a single package.

This is the cheapest way to test whether you can sell travel before you spend money on a company, IATA or a website.

Part 2: Running your own travel business in India

Do you need a licence to start a travel agency in India?

No single national licence is required. You need a business structure (proprietorship, partnership, LLP or private limited company), a PAN, a current account, GST registration once you cross the threshold (and in practice from day one if you sell to businesses), and the local shop and establishment registration your state requires.

Ministry of Tourism approval is voluntary. The Ministry approves travel agents, inbound tour operators, domestic tour operators and adventure tour operators under separate guidelines, and the application now runs through the NIDHI portal. You can operate without it, but approval adds credibility with foreign partners and government buyers and makes you eligible for Ministry schemes and trade-fair support.

Scenario 5: Domestic travel agency and ticketing

Flights, trains, buses, hotels and domestic packages for Indian travellers. Most new agencies start with a B2B portal or consolidator rather than direct airline accreditation.

• GST on air tickets: an air travel agent can pay GST on the actual commission, or use the deemed-value option in Rule 32(3) of the CGST Rules: 5% of the basic fare for domestic bookings and 10% for international bookings, with GST at 18% on that value.
• GST on hotels and packages: depends on whether you act as an agent earning a commission or as a principal selling a package (see the GST section below).
• Working capital: consolidators usually want deposits or prepaid wallets. Credit lines come later.

Scenario 6: An IATA-accredited agency

IATA accreditation lets you issue airline tickets on your own stock through the Billing and Settlement Plan (BSP), instead of buying through a consolidator. Under IATA’s NewGen ISS framework, Indian agents choose between three models:

• GoLite: for smaller agents. Cash-and-carry: you pay for each ticket at the time of sale through IATA EasyPay, and you are exempt from submitting financial statements and from providing financial security.
• GoStandard: the classic model, with BSP credit settlement, annual financial review, and financial security (bank guarantee or IATA-approved insurance) based on your sales.
• GoGlobal: for multi-country agencies operating in several markets.

Expect to show qualified ticketing staff, a registered business, a premises or office arrangement, and financial statements for the credit models. IATA rules are updated regularly, so check the current India criteria on IATA’s agency accreditation pages before you apply.

Note for US-facing businesses: IATA accreditation in India does not let you issue tickets as a US agency. In the US, ticketing accreditation runs through ARC, and the IATAN ID card is for US-based advisors. A US LLC owned from India normally works through a US host agency instead (Scenario 11).

Scenario 7: Outbound tour operator (selling foreign holidays to Indians)

Dubai, Thailand, Bali, Singapore, Europe, Kashmir-style group departures abroad. This is where most Indian holiday companies make money, and where the tax rules bite hardest.

• TCS of 2% from the first rupee: since 1 April 2026, the seller of an overseas tour programme package must collect tax at source at a flat 2%, with no threshold (previously 5% up to Rs 10 lakh and 20% above). The provision now sits in section 394(1) of the Income-tax Act, 2025, which replaced section 206C(1G) of the 1961 Act. The customer gets credit for it in their return.
• Corporate buyers: where a business customer has already deducted TDS on your invoice, TCS generally does not apply again. Agree the treatment up front.
• Paying foreign suppliers: hotels, DMCs and transport abroad are paid from India through your bank as current-account remittances for travel services. Keep supplier invoices, because your bank will ask.
• GST: usually 5% without input tax credit on the gross package value, or 18% with credit (see below). Place-of-supply rules for foreign hotels and events need care.

A US LLC does not help here: your customers are Indian residents paying in rupees, and TCS follows the sale, not the seller’s flag.

Scenario 8: Inbound tour operator or DMC (bringing foreigners to India)

Golden Triangle tours, Kerala backwaters, Rajasthan heritage, Ladakh treks, Buddhist circuits, ayurveda retreats and student or corporate groups. You sell to foreign travellers directly or, more often, to foreign tour operators who resell your product. This is India’s classic foreign-exchange earner.

• Ministry of Tourism approval as an inbound tour operator is voluntary but strongly recommended: foreign wholesalers and embassies often ask for it.
• Getting paid: foreign tour operators pay you by wire to your Indian current account. Raise invoices in foreign currency, get the purpose code right, and keep FIRAs.
• GST is not automatically zero: even though you earn foreign exchange, many inbound tours do not qualify as exports, because place-of-supply rules tie hotel accommodation and events to their location in India, and much depends on whether you sell as principal or as agent. Get a written opinion from a GST practitioner on your exact contract model before you price.
• Does a US LLC help? Sometimes. If you sell directly to American travellers through your own website and ads, a US LLC with a US bank account and US card processing can improve trust and conversion. The tour is still delivered by your Indian company, so you need a clean contract between the two entities and correct transfer pricing. Do not route Indian revenue through the US entity to avoid Indian tax.

Scenario 9: MICE, destination weddings and group travel

Meetings, incentives, conferences and exhibitions, plus the huge Indian destination-wedding market in Udaipur, Goa, Thailand, Dubai, Bali and Europe. Margins are good and ticket sizes are large.

• Advances: you collect large deposits and pay venues long before the event. Write clear cancellation terms, and keep client money in a separate account.
• GST: services related to events can have special place-of-supply rules, and events abroad booked by Indian clients are a common area of dispute. Take advice per contract.
• Foreign clients: NRI families and foreign companies planning events in India often want to pay in dollars, pounds or dirhams. Indian current accounts can receive this; a US LLC helps only if you actively sell to US clients and want US payment rails.

Scenario 10: Niche travel (medical, wellness, adventure, pilgrimage)

• Medical value travel: facilitators connect foreign patients with Indian hospitals. Never give medical advice, keep clear written commission agreements with hospitals, and understand that patients enter on the appropriate medical visa.
• Wellness and ayurveda retreats: high-value inbound business, often sold to US and European buyers online.
• Adventure travel: trekking, rafting and mountaineering. The Ministry of Tourism has separate adventure tour operator guidelines, and many states and activities have their own safety permits. Insurance is not optional.
• Pilgrimage: Char Dham, Buddhist circuits and religious tourism. Specific pilgrimages abroad, such as Hajj, run under their own government registration schemes.

Part 3: Selling travel and travel services to the world

Scenario 11: Selling travel to US and other foreign travellers

This is the scenario with the most upside and the most traps. You want American (or British, Canadian, Australian) travellers to book trips with you, whether trips to India, Indian-curated trips worldwide, or general travel.

Why many founders use a US LLC here:

• US travellers trust a US company with a US address, a US phone line and US card checkout.
• You can receive ACH and card payments in dollars into a US business bank account, then pay suppliers or bring profits to India.
• Many US host agencies, consortia and suppliers only contract with US entities that have an EIN.

The rules you must know before you sell a single trip to an American:

1. Seller-of-travel laws. California, Florida, Washington and Hawaii require sellers of travel to register (Iowa and Nevada have their own rules too), and these laws generally apply to anyone selling to residents of those states, including out-of-state and foreign sellers. Depending on the state, that means registration fees, a client trust account or bond, and mandatory consumer disclosures. Some states exempt independent contractors who sell entirely under a registered host agency.
2. Host agency or your own accreditation. Most small sellers join a US host agency, which gives you supplier commissions, booking tools and often seller-of-travel coverage. Getting your own ARC accreditation is a bigger step, and IATAN credentials are designed for US-based advisors.
3. Payment processors treat travel as higher risk. You are selling services delivered weeks or months later, so expect extra review at onboarding, possible rolling reserves, and close attention to chargebacks. Have refund terms, supplier confirmations and delivery evidence ready.
4. Indian rules still apply to you. As an Indian resident owning a foreign company, you report the investment as overseas direct investment (Form FC through your bank), declare the LLC in Schedule FA of your ITR every year, and bring money home through the legal routes. See ODI and LRS explained.
5. US filings. A single-member LLC owned by a non-US person files Form 5472 with a pro-forma 1120 every year, even with zero US tax due. See our Form 5472 guide.

Scenario 12: Travel content creator and affiliate

Travel YouTube, Instagram reels, blogs and newsletters earn from ad revenue, brand deals, tourism-board campaigns and affiliate commissions from hotel, activity and travel-insurance platforms.

• US tax forms: as an Indian individual you give W-8BEN to US platforms to claim the India-US treaty rate on royalties and avoid wrong withholding. With a US LLC, the paperwork changes, so set it up correctly from the start.
• Why some creators use a US LLC: some affiliate programmes and brand-deal agencies pay US entities more smoothly, and a US bank account avoids repeated conversion fees.
• In India: foreign receipts are export of services income, with GST LUT once you are registered. See our guide for YouTube creators.

Scenario 13: Travel-tech SaaS and tools for agencies

Itinerary builders, B2B booking engines, CRM for travel advisors, AI trip planners, visa-document tools. India has deep engineering talent and real domain knowledge from its travel desks. Your buyers are often US agencies and advisors who pay monthly by card.

• Bootstrapped SaaS: a US LLC with Stripe and a US bank account is the common setup for collecting subscriptions from US customers. See our page for SaaS founders.
• Raising from US investors: they will usually want a Delaware C-corp. Read the Delaware flip guide before you choose.
• Data: if you store traveller passport and payment data, you are a target. Do not store card numbers yourself; use a compliant payment processor.

Scenario 14: Back-office and BPO for foreign travel agencies

The business version of Scenario 3. Your Indian team runs ticketing queues, reissues and refunds, mid-office accounting, supplier reconciliation, 24x7 traveller support and quality control for foreign agencies and travel management companies.

• Structure: usually an Indian LLP or private limited company contracting directly with foreign clients. Exports of services are zero-rated under LUT.
• Contracts: service levels, data protection, who holds GDS credentials, and liability for ticketing errors (a wrong fare can cost more than a month’s fee).
• Does a US LLC help? Sometimes, as a sales and contracting front for US clients who prefer a US vendor. Keep the delivery and staff in the Indian company and document the arrangement properly.

The GST rules every Indian travel business must know

The 5% and 18% options carried into the simplified rate structure that took effect on 22 September 2025. SAC codes and conditions matter: confirm both against the current CBIC rate notification with your CA before you finalise prices.

TCS on overseas tour packages: the 2026 change

• Rate: flat 2% of the package price, from the first rupee, for sales on or after 1 April 2026.
• Who collects: the seller of the overseas tour programme package, which means you if you are an outbound tour operator.
• What counts: packages that bundle travel abroad with hotels, transport or other services. Standalone flight tickets are generally not a tour package.
• Law: section 394(1) of the Income-tax Act, 2025 (formerly section 206C(1G) of the 1961 Act).
• For the customer: TCS is not an extra tax. It is credited against their income tax or refunded when they file their return.

Getting paid from abroad: FEMA basics

Whichever scenario you are in, foreign money must come in the right way:

• Receive payments into an Indian bank account through banking channels, with the correct purpose code. Platforms such as Wise, Payoneer and Skydo can work if they deliver a proper FIRA.
• For exports of services, the money must reach India within 15 months of the invoice, and from 1 October 2026 exporters declare service exports to their bank on an Export Declaration Form (EDF).
• If you own a US LLC, profits come home as dividends, as payment for services your Indian business provides, or as salary if you work for it, each with different tax effects. Our Bring Money Home guide explains the two legal routes.

When a US LLC is worth it in travel, and when it is not

Worth it when:

• Your customers are in the US and you sell to them directly online (Scenarios 11, 12 and 13).
• US agencies, hosts or suppliers require a US entity, EIN and W-9.
• You need US card processing and ACH to compete with US sellers.

Not worth it when:

• Your customers are Indian (Scenarios 5, 6 and 7). TCS, GST and Indian consumer law apply regardless.
• You only want to “save tax”. As an Indian resident you are taxed in India on your worldwide income, and a US company managed from India does not change that.
• You expect a visa from it. A US LLC is not a visa. It does not let you live or work in the US, and India is not an E-2 treaty country. Read our note on the 2026 H-1B crackdown for more.

Step by step: starting a US travel business from India

1. Pick your scenario and customer. Who pays you, from which country, for what?
2. Form the LLC. Wyoming suits most Indian founders: a $103.75 state filing fee, a $60 annual report and no state income tax. See how to form a US LLC from India.
3. Get an EIN without an SSN and open a US business bank account remotely. See opening a US bank account from India.
4. Join a US host agency or sign supplier contracts, and check seller-of-travel registration for the states you sell into.
5. Set up payments with a processor that accepts travel merchants, with clear booking terms and a refund policy.
6. Handle the India side: Form FC before you fund the LLC, Schedule FA every year, EDFs for service exports, and a CA who understands both sides.
7. File the US side every year: Form 5472 with pro-forma 1120 and the Wyoming annual report.

Common mistakes we see

• Collecting customer money for overseas packages without collecting TCS.
• Assuming every foreign-currency receipt is a zero-rated export.
• Selling to Californians or Floridians without checking seller-of-travel rules.
• Mixing client deposits with business money, then being unable to refund a cancelled trip.
• Receiving freelance payments through a friend’s account or a personal PayPal with no FIRA.
• Forming a US LLC and forgetting Form FC, Schedule FA and Form 5472.

Frequently asked questions

Do I need a licence to start a travel agency in India?

No single licence is mandatory. You need a business registration, PAN, bank account, GST registration once you cross the threshold, and local shop and establishment registration. Ministry of Tourism approval (through the NIDHI portal) and IATA accreditation are optional but add credibility.

Can I work for a US travel agency from India?

Yes. You can work as a remote employee through an Employer of Record, or as an independent contractor exporting services. Contractors must receive payment through banking channels with a FIRA and register for GST once over the threshold, invoicing under a Letter of Undertaking without GST.

What is the GST rate for tour operators in India in 2026?

Tour operators generally choose between 5% GST on the gross package value without input tax credit, if the conditions are met, and 18% GST with full input tax credit. Agents earning only a commission pay 18% on the commission.

What is the TCS on overseas tour packages from 1 April 2026?

A flat 2% from the first rupee, with no threshold, under section 394(1) of the Income-tax Act, 2025. Previously it was 5% up to Rs 10 lakh and 20% above. The customer can claim credit for it in their tax return.

How do I get IATA accreditation in India?

Apply to IATA under the NewGen ISS framework and choose GoLite (cash-and-carry with no financial security), GoStandard (credit settlement with financial review and security) or GoGlobal (multi-country). You need a registered business, qualified ticketing staff and, for credit models, financial statements.

Is an inbound tour for foreign tourists an export of services?

Not automatically. Even when paid in foreign exchange, place-of-supply rules can locate hotel and event components in India, which makes the service taxable. The answer depends on your contract model, so take written advice from a GST practitioner.

Can an Indian sell travel to Americans through a US LLC?

Yes. An Indian resident can own 100% of a US LLC, get an EIN without an SSN, open a US bank account and sell travel to US customers, usually through a US host agency. You must follow state seller-of-travel laws such as those in California and Florida, file Form 5472 every year, and report the LLC in India as overseas direct investment.

Does owning a US travel LLC let me work in the US?

No. A US LLC is a business, not an immigration status. It does not give you a visa or the right to work in the US.

Do Indian freelancers booking travel for foreign agencies pay 18% GST?

Not necessarily any more. The Finance Act, 2026 omitted section 13(8)(b) of the IGST Act, so intermediary services are now located where the foreign client is and can qualify as zero-rated exports if the other export conditions are met. Confirm the effective date with your CA.

Sources

• Ministry of Tourism, Government of India: tourism.gov.in and NIDHI portal for approval of travel agents and tour operators.
• IATA: Travel agency programme and NewGen ISS.
• Taxscan: Budget 2026 slashes TCS on foreign tours to 2%.
• TDSMAN: TCS on overseas tour packages, section 394(1).
• Grant Thornton Bharat: GST on intermediary services: legislative reset through Finance Act, 2026.
• ClearTax: GST on tours and travels.
• Travel Weekly (Mark Pestronk): Seller-of-travel requirements vary from state to state.
• IATA: IATAN accreditation requirements.

Build your travel business for US clients

If your customers are in the US, sell to them as a US company. Start your Wyoming LLC with USBizGuru from $49 plus the state fee, or compare the packages. We handle the US filing, the EIN without an SSN and bank account introductions, plus the India side most providers never mention: Form FC, EDF tracking and Schedule FA reminders, with support on WhatsApp in English, Hindi and Gujarati.

Updated 29 October 2026. Tax and licensing rules change; check current rules before acting. General information, not legal, tax or immigration advice.