ITC on hotel rent -Section 17 (5) (g) of CGST act

[janakiraman iyer]

Section 17 (5) (g) of CGST denies credit on goods and services or both used for personal consumption. In the light of this when an employee travels on business and avails hotel accommodation, whether GST on the hotel rent is eligible for ITC, as the services is consumed by the employee for personal consumptio

AI Summary

GST on Hotel Stays for Business Travel Eligible for ITC Under Section 17(5)(g); Excludes Food Expenses. A discussion on a forum addressed whether GST paid on hotel accommodation for employees traveling on business is eligible for Input Tax Credit (ITC) under Section 17(5)(g) of the CGST Act. The consensus among participants is that ITC is permissible if the hotel stay is for business purposes, as the section disallows credit only for personal consumption. However, ITC is not available for food expenses. Participants agreed that when the hotel stay is for official purposes, the GST paid can be claimed as ITC.