TaxTMI 
TaxTMI 
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
ITC on hotel rent -Section 17 (5) (g) of CGST act
20 Dec 2017 
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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. (AI Summary)
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. (AI Summary)