ITC ELEIGIBILITY FOR EMPLOYEES OUTSTATION TRIP STAY, TICKETS ETC

[SAFETAB LIFESCIENCE]

Dear Experts,

Our comopany staff use to travel frequently for marketing purpose and stay at outstations.

Can we avail ITC of the GST paid Flight Tickets charged by flight operators, GST paid on Travel agency's bills, hotel bills. We are getting bills with IGST from outstation parties and CGST+SGST for local bills properly.

For e.g., Our company is in Pondicherry and our employees are staying in Mumbai. Some hotels are giving only CGST+IGST bills as their place of supply is Maharastra. In that case, shall we take ITC of that CGST and SGST ???

AI Summary

Can businesses claim Input Tax Credit on GST for outstation travel expenses? Experts clarify rules and compliance needs. A company inquires about the eligibility of Input Tax Credit (ITC) for GST paid on flight tickets, travel agency services, and hotel bills incurred during employees' outstation trips. The main concern is whether ITC can be claimed on CGST and SGST charged by hotels in other states. Experts respond that ITC can be claimed if the expenses are for business purposes and proper invoices are issued. However, ITC on CGST and SGST from other states is generally not allowed unless routed through an Input Service Distributor (ISD). The discussion highlights the need for proper registration and compliance with GST rules to avail ITC.