GST-ITC ON HOTEL BILLS
Query (Issue) Started By: – SAFETAB LIFESCIENCE Dated:- 2-1-2019 Last Reply Date:- 5-1-2019 Goods and Services Tax – GST
Got 6 Replies
GST
Dear Experts,
\nOur Company Employees\/Directors\/Guests are staying at Hotels on official visit.
\nWe are getting Loding and Boarding Bills jointly and sometimes separately.
\nSometimes, in other state hotels, they are charges only CGST+SGST through our
\nGST Number is different from their state. Some hotels giving IGST.
\n1. Shall we avail ITC of IGST and CGST+SGST ???
\n2. Shall we avail ITC for Loding amount only or Lodging and boading together. ???
\nReply By KASTURI SETHI:
\nThe Reply:
\nPlace of supply is covered under Section 12 (3)(c) of IGST Act, 2017. Only CGST & SGST is to be charged by the owner of Hotel. Service is intangible in nature. Company employee goes to Hotel for stay in a State so service is supplied and consumed in that particular State. How IGST can be charged by Hotel owner ? See Para No.10(C) of Boa<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n voices. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ishing, maintaining and furnishing guest houses including landscaping by way of gardening or otherwise is neither a perquisite nor a statutory obligation. “It is purely for providing accommodation service to guests including employees on tour. This is, in fact, a business requirement to maintain such facilities and accordingly, the applicant is entitled to input tax credit of the tax paid on inward supply of input and input services for maintenance of the guest house, transit house, and training hostels, but excluding the food and beverages provided in such establishments.” = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST-ITC ON HOTEL BILLS Query (Issue) Started By: – SAFETAB LIFESCIENCE Dated:- 2-1-2019 Last Reply Date:- 5-1-2019 Goods and Services Tax – GSTGot 6 RepliesGSTDear Experts, Our Company Employees\/Directors\/Guests are staying at Hotels on official visit. We are getting Loding and Boarding Bills jointly and sometimes separately. Sometimes, in other state hotels, they are charges … Continue reading “GST-ITC ON HOTEL BILLS”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15867","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15867"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15867\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nThe applicants submitted that the management, maintenance, and repair service obtained from the service providers for the running of these establishments has the direct benefit to the business operations of the applicant. Since the services are used in the course of and, also, in furtherance of its business, it is entitled to utilize credit of input tax paid by the service providers for paying output tax on the supplies made by the applicant in terms of section 16 of CGST Act. That the supplies, on which the applicant seeks to take input tax credit, are not blocked in section 17(5) of CGST Act. It was also stated that it would be entitled to take credit of tax paid on works contract service only for activities, for which the expenditure is claimed as revenue expenditure and not capitalized. It would not claim any credit with respect to services for which the expenditure is capitalized. After hearing contentions from both sides, the authority noted that the establishment of hos<\/p>\n
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\nReply By KASTURI SETHI:
\nThe Reply:
\nM\/s. YAGAY AND SUN,
\n Thank you, Sir. I was in search of this decision of AAR but could not trace out and posted reply on the basis of my memory.
\nReply By Alkesh Jani:
\nThe Reply:
\nDear Experts,
\nThis discussion is worth to be noted, but to add a small part, that decision of AAR is applicable only to that state and the person who have applied for it. Therefore, based on this, the<\/p>\n
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