GST Credit In case of Hotel Booking

[CABIJENDERKUMAR BANSAL]

Dear Sir,

If a company registered in Noida makes hotel booking in Mumbai then how GST credit can be taken.

As in case of Immovable property, place of supply is place of immovable property then Mumbai hotel will charge CGST +SGST . Then can be take credit of this GST.

In other case, if we book through travel agent in Delhi, and if it charges IGST then can we take GST credit in this case ?

Please clarify GST credit mechanism in case of hotel booking and how should we plan to take maximum GST credit.

Thanks

CA Gorav Goyal

AI Summary

GST input tax credit for hotel bookings: IGST credit usable against liabilities; CGST/SGST credit constrained by place of supply.
Input tax credit on hotel accommodation is governed by the place of supply for immovable property: the hotel's location determines CGST and SGST applicability. A purchaser in another state cannot utilise SGST paid in the hotel's state; CGST credit is usable only against central tax liabilities. If a travel agent charges IGST for inter state booking, IGST credit can be availed and utilised in the prescribed order. A local branch in the hotel's state can claim both CGST and SGST and may distribute unused credit via an input service distributor.