Do you really know how much OTAs take from each booking?
After commission, GST on commission, TDS, and TCS deductions, your actual settlement can be 20-30% less than your room rate. Calculate your exact loss below.
Commission 15-25%
+ 18% GST on Commission
+ TDS 0.1% + TCS 0.5%
Frequently Asked Questions
What is OTA commission and how does it work?
OTA (Online Travel Agency) commission is a percentage fee charged by platforms like MakeMyTrip, Booking.com, and Goibibo for each booking they generate. Typically ranging from 15-25%, this commission is deducted from your room rate before settlement.
Why is there GST on commission (18%)?
OTA services are classified as intermediary services under GST law, attracting 18% GST. This GST is charged on the commission amount, not on your room rate. For example, if commission is ₹630 (21% of ₹3,000), GST on commission would be ₹113.40 (18% of ₹630).
What is TDS and TCS on hotel bookings?
TDS (0.1%): Under Section 194-O, e-commerce operators must deduct TDS on gross sales.
TCS (0.5%): Under Section 206C(1H), sellers must collect TCS. Both are adjustable against your income tax.
When is GST 5% vs 18% on room tariff?
GST on hotel rooms depends on the declared tariff:
• 5% GST: Room tariff up to ₹7,500/night
• 18% GST: Room tariff above ₹7,500/night
How can I reduce OTA commission impact?
Key strategies: Build direct booking website, offer best-rate guarantee for direct bookings, collect guest emails for remarketing, train front desk to convert walk-ins, and partner with local corporates.
Is commission on base rate or total amount?
OTA commission is typically calculated on the base room rate (before GST). The guest pays room rate + GST, but commission is charged only on the room rate portion.
How long does MakeMyTrip or Booking.com take to pay a hotel?
MakeMyTrip and Goibibo usually settle within 7 to 15 working days after the guest checks out. Booking.com settles monthly for most Indian hotels, with payment by the 15th of the following month covering all checkouts in the prior month. Agoda follows a monthly cycle too. Every settlement arrives net of commission, GST on that commission, and TDS. You get a remittance statement with each transfer, and you should keep those for your GST input credit reconciliation.