Glossary

The Indian Travel Agency Dictionary

35 essential terms every Indian travel agent should know — GST billing, invoicing, PNR parsing, ledger management, and compliance. Each term links to a detailed guide.

Base Fare

The airline-published ticket price before airport taxes, surcharges, and GST — the only component subject to GST under the Principal model.

Read more in: How to Calculate GST on Air Tickets →

Airport Taxes

Government levies (YQ, YR, PSF, UDF) added to the base fare. Passed through at cost and not subject to GST.

Read more in: How to Calculate GST on Air Tickets →

B2B Invoice

A tax document issued to a business customer with a valid GSTIN, reported individually in GSTR-1 Table 4A.

Read more in: GSTR-1 & GSTR-3B Automation →

B2B Quote

A vendor proposal from a DMC or wholesaler listing services, net rates, and package components for the agent to resell with markup.

Read more in: B2B Quote to Itinerary →

B2C Invoice

A tax document for individual consumers without GSTIN, reported as aggregated totals by tax rate in GSTR-1 Table 7.

Read more in: GSTR-1 & GSTR-3B Automation →

Booking Class

A single-letter fare category (Y, S, V, etc.) indicating cabin level (Economy, Business, First) and fare rules of a flight seat.

Read more in: PNR Parser Guide →

Cancellation Note (E1)

A GST-compliant document reversing the original invoice amount minus cancellation charges when a booking is cancelled.

Read more in: Travel Agency Ledger Guide →

Carry-Forward Balance

An amount from a previous transaction (overpayment, cancellation refund, off-platform adjustment) that rolls into a future booking, linked to the Original Invoice.

Read more in: Hidden Markups & Dual Invoicing →

Credit Note

A GST-compliant document reversing or reducing tax liability from a previous invoice, required under Section 34 of the CGST Act.

Read more in: GSTR-1 & GSTR-3B Automation →

Customer Advance

A prepayment received before a booking is confirmed, credited to the customer's advance ledger for application to future trips.

Read more in: Travel Agency Ledger Guide →

Customer Advance Ledger

A per-customer account tracking all credits (deposits, refunds) and debits (booking applications) with a running balance using FIFO auto-application.

Read more in: Travel Agency Ledger Guide →

DMC (Destination Management Company)

A B2B wholesale travel company packaging local hotel, transport, and sightseeing services at net rates for agents to resell.

Read more in: B2B Quote to Itinerary →

Dual Invoicing

Generating a customer-facing tax invoice and a private internal margin sheet simultaneously — customer sees selling price, agency sees vendor costs and profit.

Read more in: Dual Invoicing Guide →

FIFO (First-In-First-Out)

An accounting principle where the oldest advance or credit is applied first to new bookings, ensuring consistent and auditable balance application.

Read more in: Travel Agency Ledger Guide →

GDS (Global Distribution System)

A centralized network (Amadeus, Sabre, Galileo) used by travel agents to search, book, and manage airline reservations globally.

Read more in: PNR Parser Guide →

GDS Consolidator

A third-party provider supplying discounted air tickets at net rates to travel agents for resale under the Principal billing model.

Read more in: How to Calculate GST on Air Tickets →

Generic PNR Parser

An AI-powered system that extracts flight information from free-form text, emails, WhatsApp messages, or images — beyond structured GDS formats.

Read more in: PNR Parser Guide →

GSTR-1

The monthly/quarterly outward supply return detailing every invoice with customer GSTIN, HSN/SAC codes, and tax breakdowns.

Read more in: GSTR-1 & GSTR-3B Automation →

GSTR-3B

The monthly summary GST return showing aggregate outward supplies, input tax credits claimed, and net tax liability payable.

Read more in: GSTR-1 & GSTR-3B Automation →

Hidden Markup

The profit margin added above the vendor net rate that is not visible to the customer, tracked on the Internal EXT Invoice.

Read more in: Hidden Markups & Dual Invoicing →

HSN/SAC Code

A government-mandated classification code for goods (HSN) or services (SAC) required on every GST invoice — e.g., 996411 (flights), 996311 (hotels), 996422 (cabs).

Read more in: GSTR-1 & GSTR-3B Automation →

IATA Code

A standardized identifier for airlines (2-letter, e.g., AI = Air India) or airports (3-letter, e.g., DEL = Delhi).

Read more in: PNR Parser Guide →

Input Tax Credit (ITC)

GST paid to vendors that can be deducted from output GST liability under the Principal model. Not available under the 5% tour package scheme.

Read more in: GSTR-1 & GSTR-3B Automation →

Internal EXT Invoice

An internal document tracking actual vendor cost, hidden markup, and net profit per booking. Not shared with customers or reported in GSTR-1.

Read more in: Dual Invoicing Guide →

Net Rate

The wholesale price at which a vendor sells services to a travel agent, before markup or service fee is added.

Read more in: How to Calculate GST on Air Tickets →

Off-Platform Settlement

A payment settled outside standard banking flow — via personal UPI, contra-entry, or cash adjustment — tracked internally without affecting the GST invoice.

Read more in: Hidden Markups & Dual Invoicing →

Place of Supply

The jurisdiction determining CGST+SGST (intra-state) vs IGST (inter-state) split, derived from customer GSTIN or agency location for B2C.

Read more in: GSTR-1 & GSTR-3B Automation →

PNR (Passenger Name Record)

A coded data record in GDS systems containing flight segments, passenger names, booking classes, and reservation status.

Read more in: PNR Parser Guide →

Principal Model (@18%)

Agent is treated as buying and reselling the service. GST @18% on full selling price. ITC available on vendor purchases.

Read more in: Dual Invoicing Guide →

Principal Model (@5%)

Concessional scheme for tour operators selling bundled packages. GST @5% on full package value. No ITC available.

Read more in: Dual Invoicing Guide →

Processing Fee

A transparent charge for quote preparation and booking services, subject to GST under the Pure Agent billing model.

Read more in: B2B Quote to Itinerary →

Pure Agent Model

Agent passes vendor costs as reimbursements and charges GST only on the service fee. Lower GST liability since reimbursements are excluded from turnover.

Read more in: Dual Invoicing Guide →

Smart Receivables

A payment monitoring system tracking booking status and triggering automated WhatsApp/email reminders for overdue or partial payments.

Read more in: Travel Agency Ledger Guide →

Tax Collected at Source (TCS)

A 5% tax under Section 206C(1G) of the Income Tax Act, applicable to international tour packages exceeding ₹7 lakh annually under LRS.

Read more in: How to Calculate GST on Air Tickets →

Vendor Net Cost

The actual amount paid to the vendor for services, before any margin, markup, or processing fee is added by the agent.

Read more in: Hidden Markups & Dual Invoicing →

These terms are explained in detail across our 7 travel agency guides. Each guide covers real scenarios with formulas, examples, and how MoonTrip automates the process.