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

[KASTURI SETHI]

Employee goes on tour for and behalf of the company. He stays in the hotel for the purpose of company. So if tour is for official purpose, ITC is allowed. If for personal use, ITC is not allowed.

[Rajagopalan Ranganathan]

Sir,

Section 17 (5) (g) of CGST Act, 2017 debars availment of ITC only when the goods or services or both when supplied for personal consumption. However in your case the employee travels and avails hotel accommodation if furtherance of the business. Hence gst paid on hotel rent is available as ITC.

[Ganeshan Kalyani]

Credit is eligible for hotel stay. ITC on food is not allowed.

[CSSANJAY MALHOTRA]

Agree with all experts.

[subramanian vijayakumar]

Yes if it is officelal room'rent paid can be taken as ITC

AI Summary

Input tax credit on hotel accommodation allowed when stay is in furtherance of business; personal stays and meals excluded. Section 17(5)(g) precludes input tax credit for goods or services supplied for personal consumption. GST on hotel accommodation is eligible for input tax credit when the employee's stay is incurred in the furtherance of the employer's business; personal stays are excluded. Meal and other personal consumption components of a hotel stay are not eligible for credit and should be identified and segregated from business-related lodging costs.