ITC on Hotel bills & GTA service

[MohanLal tiwari]

Dear experts,

We are having different opinion for admissibility of ITC on :-

1. Hotel Bills - Our sales & marketing team is mostly on tour (domestic & foreign) and taking services of hotels and paying applicable GST. What are the legal provisions preventing us to avail credit on SGST & CGST paid.

2. GTA Services - Most of GTA service providers are raising invoice without charging any GST and we are paying GST @5% under RCM . Please advise if ITC for the same is admissible if not, please specify the ruling / notification issued by authority.

AI Summary

ITC Not Allowed for Interstate Hotel Bills; Eligible for GTA Services Under RCM Per CGST Act Section 17. A discussion on the admissibility of Input Tax Credit (ITC) for hotel bills and Goods Transport Agency (GTA) services under GST. The consensus is that ITC is not available for hotel bills if the point of sale (POS) and the hotel are in different states, due to discrepancies in GST returns. However, ITC is eligible for GTA services under the Reverse Charge Mechanism (RCM). Experts refer to sections of the CGST Act, particularly Section 17, which outlines ITC ineligibility. Clarifications were provided regarding the eligibility of room rent and the impact of POS on ITC claims.