Goods and Services Tax Industry Issues
Tourism and Hospitality Industry Partnership

Excess baggage

• Please note that the PDF version is the authorised version of this ruling.
  This publication is extracted from the Tourism and Hospitality Industry Partnership - issues register. See travel agents issue 15 of that register. This publication should be read in conjunction with the related content of that register where further context is required.

This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953. A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you.

1. Passengers whose luggage exceeds their allotted weight limit may be required to pay an 'excess baggage' charge.

Issue

2. What is the GST treatment of 'excess baggage' charges in relation to the GST-free transport of a passenger?

Decision

3. The transportation of the passenger's baggage is an integral part of the supply of transportation to the passenger. The 'excess baggage' charge does not constitute a separate supply. GST applies to the 'excess baggage' charge in the same manner as it applies to the supply of transportation.

References