Travel, Taxi and Adventure Businesses in Kullu-Manali: Registration, GST and TDS
Running a travel agency, taxi service, rafting camp or paragliding outfit in Kullu-Manali takes two sets of paperwork. The first is registration with the Himachal Tourism Department, which is compulsory before you start. Adventure sports operators and paragliding pilots also follow their own safety rules and seasonal bans. The second is tax: GST is 5% without input tax credit on a tour package, 5% or 18% on a taxi with driver, and 18% on adventure activities and agents’ commission. On top of that come TDS on what you pay agents and transporters, and an income tax return that matches your UPI and platform receipts. This guide sets out each one for operators in Kullu, Manali, Solang, Bir and the rest of the valley.
Step 1: tourism registration comes first
Under the Himachal Pradesh Tourism Development and Registration Act, 2002, no one may carry on business as a travel agent, guide or adventure sports operator in the state without registering with the Tourism Department. The Act defines adventure sports to include trekking, rafting, skiing, heli-skiing, bungee jumping, ballooning, water sports and aero sports.
| Business | Registration needed | Notes |
|---|---|---|
| Travel agent or tour operator selling packages, bookings and sightseeing | Travel agent registration with the Tourism Department | Needed even if you work only from a counter or online |
| Tourist guide | Guide registration | Each guide registers individually |
| Rafting, trekking, skiing, camping and other adventure activities | Adventure sports operator registration (application in Form-VI) | Equipment, trained staff and insurance are checked before registration |
| Paragliding and other aero sports | Operator and pilot registration under the HP Aero Sports Rules, 2022 | A technical committee approves training and equipment first |
| Hotel, guest house or homestay | Tourism unit registration | See our Home Stay Rules guide |
| Taxi or tempo traveller | Tourist vehicle permit from the transport authority | Separate from tourism registration |
Running without registration attracts a fine under section 46 of the Act, set at ₹1 lakh in the current text, plus a daily fine while the default continues. Kullu district also acts against unregistered rafting and paragliding operators every season, often by stopping their activity on the spot.
Step 2: the safety rules and the seasonal ban
- Paragliding: the HP Aero Sports (Amendment) Rules, 2025, notified on 20 September 2025, made a simulation safety course compulsory for tandem pilots. Pilots registered before the amendment had to complete it by 31 August 2026. A pilot without it cannot fly passengers, and an operator who lets him fly risks its registration.
- Rafting: operate only on the stretches and with the number of guides and the equipment approved in your registration.
- Monsoon ban: the Kullu administration closes rafting and paragliding every monsoon. In 2026 the ban ran from 15 July to 15 September, and activities resumed on 16 September. Plan cash flow, staff contracts and loan repayments around two dead months.
- Insurance: keep insurance cover for the customers and staff you take out, and give the customer the policy details before the activity.
Step 3: GST, activity by activity
| What you sell | GST | Input tax credit |
|---|---|---|
| Tour package that includes accommodation and transport, billed at a single gross price | 5% | No, except on tour operator services bought from another tour operator |
| Taxi or tempo traveller with driver, fuel included (rent-a-cab) | 5%, or 18% if you choose it | Restricted at 5% (only on input services in the same line); full credit at 18% |
| Rafting, paragliding, zipline, skiing and other adventure activities | 18% | Yes |
| Commission earned as an agent (hotel bookings, rail or bus tickets, activity bookings) | 18% on the commission | Yes |
| Air ticket booking by an air travel agent | 18%, on the deemed value of 5% of the basic fare for domestic tickets | Yes |
The rate on the taxi line changed from 22 September 2025: the old 12% option with credit became 18%. The 5% rate on tour packages applies only when the invoice shows the gross package price. A package billed in pieces is taxed piece by piece, and the 18% items then pull the total up.
When you must register for GST
- Once your turnover crosses ₹20 lakh in a year, the limit for services in Himachal.
- Selling through booking platforms does not by itself force a service provider to register below ₹20 lakh, but once registered, the platform deducts GST TCS from your payouts, which you claim back every month.
- Taxis booked through ride-hailing apps: under section 9(5) of the CGST Act, the app pays the GST on passenger transport booked through it, not the driver. Keep app rides and your own bookings separate in the books.
Step 4: TDS when you pay others
A tour operator that is a company or a firm, or an individual whose accounts are audited, has to deduct TDS on many of its payments:
- Taxis and transporters you hire for your packages: TDS on contract payments, 1% for individuals and HUFs and 2% for others, once a single bill or the year’s total crosses the threshold.
- Commission to agents and sub-agents who bring you customers: TDS on commission at 2% above the yearly threshold.
- Hotel rooms taken on a regular contract (an allotment block for the season), as opposed to occasional bookings, can count as rent and attract TDS.
Deposit the TDS by the 7th of the next month and file quarterly returns. Missing TDS means part of the expense can be disallowed, which raises your own tax bill.
Step 5: books and income tax
- Small operators can use the presumptive scheme, where profit is taken as 8% of turnover, or 6% on receipts through banks and UPI. A taxi owner carrying passengers can use it too; the separate per-vehicle scheme is only for goods carriages.
- UPI, card and booking platform settlements show up in your AIS, along with the TDS that platforms deduct. File on time and make sure the turnover matches.
- If you sell foreign tour packages, TCS applies when you collect the money; see our guide to TCS on foreign tour packages.
- Partners running a camp or a fleet together are better off as an LLP, which keeps each partner’s share and liability clear after an accident or a bad season.
Mistakes we see in the valley
- Operating rafting or paragliding on a friend’s registration, or with none.
- Billing a package at 5% but listing the hotel, cab and activity as separate lines on the invoice.
- Charging 5% on a taxi while also claiming full credit on the vehicle and its repairs.
- Stopping GST returns during the monsoon ban and the winter lull. Nil returns are still returns.
- Paying sub-agents and taxi owners in cash with no TDS and no record.
Frequently asked questions
Do I need registration to run a travel agency in Manali?
Yes. Travel agents, guides and adventure sports operators must register with the Himachal Tourism Department before they start business, under the HP Tourism Development and Registration Act, 2002.
What is the GST on a tour package in Himachal?
5% without input tax credit when the package includes accommodation and transport and the invoice shows the gross price. Otherwise each part is taxed at its own rate.
What is the GST on paragliding and rafting?
18%, with input tax credit, once the operator is registered for GST.
What is the GST on taxi services in Manali?
A taxi with driver, fuel included, is taxed at 5% with restricted credit, or 18% with full credit if the operator opts for it. Rides booked through a ride-hailing app are taxed in the app’s hands.
When are rafting and paragliding closed in Kullu?
During the monsoon. In 2026 the Kullu administration banned both from 15 July to 15 September, and they resumed on 16 September. The dates are fixed each year by order.
Get registered and stay compliant
TAXAJ handles GST registration, GST returns, TDS and the books for travel agents, taxi operators and adventure camps across Kullu and Manali. Read our guide to GST for travel agents and the GST guide for Manali hotels and homestays, see our travel business services, or talk to our Manali team.
Last updated 16 October 2026. Sources: sections 3, 26, 27 and 46 of the Himachal Pradesh Tourism Development and Registration Act, 2002; HP Aero Sports Rules, 2022 and the HP Aero Sports (Amendment) Rules, 2025; Kullu district orders on the 2026 monsoon ban; GST rate notifications for tour operator, rent-a-cab and recreational services as amended with effect from 22 September 2025; section 9(5) of the CGST Act. General information only; check your own registration and invoices before applying it.
