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

Input tax credit on hotel bills: room rent may qualify while food and inter state place of supply issues can restrict CGST/SGST credit.
ITC on hotel expenses: food and beverages are ineligible while room rent may be eligible; eligibility depends on Place of Supply alignment - same-state POS allows CGST/SGST credit, differing-state POS can prevent credit due to return reporting mismatches. Foreign hotel services do not attract Indian GST. GTA services subject to reverse charge when uncharged by supplier are treated as eligible for ITC.