Content authored by practitioners with experience at Amazon India, Intuit QuickBooks, and the Tata Group. Meet the team →
MakeMyTrip hotel settlements arrive net of commission, 18% GST on commission, and either 194-O TDS (e-commerce operator) or 194H TDS (commission agent) depending on booking type — while the hotel must recognise gross room revenue at the correct 12% or 18% GST slab and match each booking back to a PMS folio with cancellation, no-show, and MyBiz corporate variations all treated differently.
Match MMT settlement file booking-by-booking to PMS folio: gross room rate, commission deducted, GST on commission, TDS section applied (194-O or 194H), and net payout. Gross up the net to true room revenue at the correct slab, claim 18% ITC on commission GST, reverse cancellations against the original sale period, and split B2C from MyBiz for correct place-of-supply on GSTR-1.
MMT settlement file connector keyed to booking ID; PMS folio adapter (Opera, IDS Next, eZee); GSTIN master with seller state and customer state; 194-O versus 194H decision rule per booking type; cancellation reversal logic by sale period.
A reconciled hotel ledger with each MMT booking matched to a PMS folio, gross room revenue at the correct GST slab, ITC on commission GST claimed, TDS reconciled to Form 26AS, and cancellation credit notes filed in the correct GSTR-1 period.
A 60-room property in Goa receives weekly settlement files from MakeMyTrip covering 180 to 220 bookings per cycle. Each file lists gross room amount, MMT commission, 18% GST on commission, TDS deducted, and net payout — but cancellations from earlier cycles appear as negative lines, MyBiz corporate bookings carry different commission rates, and the hotel’s PMS shows folios that need to be matched back to MMT booking IDs. This article is for hospitality finance teams reconciling MakeMyTrip settlements in India.
What MakeMyTrip Hotel Settlement Reconciliation Involves
MakeMyTrip hotel settlement reconciliation is the process of matching three data sets per settlement cycle: the MMT settlement file (booking ID, gross room amount, commission, GST on commission, TDS, net payout), the property’s PMS folio data (check-in, check-out, room nights, tariff, GST slab), and the bank credit (single net amount per cycle). The output is a reconciled revenue ledger that recognises gross room revenue at the correct GST slab while booking commission expense and ITC against MMT’s tax invoice.
The complication unique to OTA settlements in India is the dual TDS treatment. Under Section 194-O, MMT as an e-commerce operator deducts 1% TDS on the gross amount paid to the hotel. Under Section 194H, the hotel deducts 1% TDS on commission paid to MMT. The applicable section varies by booking type and contract — MMT Assured prepaid inventory typically flows through 194-O, while pay-at-hotel and certain B2B contracts may still operate on a 194H commission-agent basis.
How MMT Settlement Reconciliation Works
Matching Booking IDs to PMS Folios
The first step is to match each MMT booking ID in the settlement file against a folio in the property management system. The PMS folio carries the actual stay dates, room nights consumed, and any incidental charges added at check-in. Discrepancies surface here — a booking marked as completed in MMT but with a no-show flag in PMS requires a different revenue treatment, and an MMT cancellation processed after PMS posting needs a folio reversal.
Deriving GST on Room Revenue (12% vs 18%)
Indian GST on hotel accommodation is rate-slab based on tariff per room per night: 12% for tariffs up to ₹7,500 and 18% above ₹7,500. The relevant tariff is the actual transaction value — MMT’s selling price net of any MMT-funded discount but inclusive of the hotel’s published rate. For dynamic pricing properties, a single contract may produce 12% bookings on weekdays and 18% bookings on peak weekends. The reconciliation logic must apply the slab per booking, not per contract.
Splitting Commission GST as ITC
MMT raises a monthly tax invoice on the hotel charging 18% GST on the aggregate commission earned. This GST is ITC-eligible against the hotel’s output GST on room revenue. The reconciliation must extract the commission GST amount per booking, aggregate it monthly, and match the MMT tax invoice in GSTR-2B before claiming ITC. Mismatches between the booking-level GST in the settlement file and the consolidated invoice are a common audit finding.
TDS Section Determination
For each booking, the reconciliation must determine whether MMT acted as an e-commerce operator (194-O, MMT deducts 1% on gross) or as a commission agent (194H, hotel deducts 1% on commission). The settlement file indicates the mode per booking. TDS deducted under 194-O reflects in the hotel’s Form 26AS as receipts from MMT and offsets the hotel’s own income tax liability. TDS deducted under 194H is the hotel’s own deduction and must be deposited via Challan 281 by the 7th of the following month.
MMT Hotel Settlement Reference
| Element | B2C Booking | MyBiz Corporate |
|---|---|---|
| Commission range | 15% to 25% | Negotiated, typically lower than B2C |
| GST on commission | 18% under SAC 998559 | 18% under SAC 998559 |
| Place of supply | Customer billing state | Corporate GSTIN state |
| Tax invoice recipient | End consumer (B2C) | Corporate employer |
| TDS regime | 194-O on gross (typical) | Varies — 194H or 194-O per contract |
| Cancellation handling | Negative line in next cycle | Negative line, often with retention |
India Compliance Angle: GSTR-1 Place of Supply for OTA Bookings
For B2C MMT bookings the place of supply for the room night is the hotel’s location — the supply happens where the property sits. The hotel reports the supply in GSTR-1 Table 7 by state and rate. For MyBiz corporate bookings issued to a registered GSTIN, the invoice is B2B and reports under Table 4 with the corporate’s GSTIN. Mixing the two — invoicing all MMT bookings as B2C — produces a GSTR-1 mismatch when the corporate buyer’s auditor traces the invoice in GSTR-2A and finds it under B2C aggregates.
Hotel finance teams using payment gateway reconciliation tooling can ingest MMT settlement files in the same pipeline as direct booking gateway payouts. Broader reconciliation software India platforms extend this with multi-OTA support, PMS connectors, and the 194-O versus 194H decision logic at booking level. Industry guidance from FHRAI on OTA contracts and commission structures provides the policy backdrop for finance and compliance teams.
For the broader hotel industry reconciliation surface, see the Hotels & Hospitality industry guide.
The following questions address the MMT settlement reconciliation issues hotel controllers encounter most frequently.