Goods and Services Tax

ITC ON HOTEL STAY AND FOOD FOR DIRECTORS/MANAGERS

Goods and Services Tax – Started By: – SAFETAB LIFESCIENCE – Dated:- 10-7-2018 Last Replied Date:- 11-7-2018 – Dear Experts, Our Directors/Managers visiting outstation on business trip . Please clarify whether we are eligible for ITC for the following cases.1. IGST charged on Lodging Bills of Other state hotels.2. IGST charged on Food Bills of Other state hotels.3. CGST + SGST charged on Lodging Bills of Local state Hotels where our GST registration is held. 4. CGST + SGST charged on Food Bills of Local state bills where our GST registration is held. – Reply By Rajagopalan Ranganathan – The Reply = Sir, According to Section 12 (3) (b) of IGST Act, 2017, the place of supply of services by way of lodging accommodation by a hotel, inn, guest

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person is an un-registered person . Therefore, in view of the above hotel owners in a State are liable to charge /cgst and SGST and not IGST though their customers belong to other State. According to Section 49 (5) (e) & (f) of CGST Act, 2017 the amount of input tax credit available in the electronic credit ledger of the registered person on account of the central tax shall not be utilised towards payment of State tax or Union territory tax and the State tax or Union territory tax shall not be utilised towards payment of central tax. In view of the above my view is that you cannot avail the credit of said taxes paid. – Reply By SAFETAB LIFESCIENCE – The Reply = Dear Sir, In response to the reply received by me, I am stating that I am ve

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tration. The food bill is not eligible for credit as it falls under personal consumption which is excluded in Sec 17(5) of CGST Act. The hotel cannot charge IGST. The provision stated by Sri Rajagopalan Sir supports this view. – Reply By KASTURI SETHI – The Reply = Admissibility of ITC depends on the major factor whether IGST is applicable or CGST & SGST and applicable of these taxes depends upon the determination of place of supply. In my view in this regard, Rule of thumb is as under:- (i) If there is movement of goods from one State to another State IGST is applicable. Similarly, if there is a movement of services from one State to another State IGST is applicable barring some situation i.e. Renting of Immovable property etc.. The fa

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