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 ???

[KASTURI SETHI]

Thanks Sir for enrichment of my knowledge.

[KumaraswamyReddy Alluganti]

Hi If u want to avail CGST and SGST paid in a particular state as ITC, U should have a registration in that state else the invoice should be an IGST invoice. Even it was clear that a particular state's CGST credit cannot be set off against the other state's liability, similarly with SGST credit also.

AI Summary

Input tax credit eligibility: travel and hotel GST credit depends on place of supply, invoice type and registration status.
ITC for employee travel and accommodation is available when incurred in the course of business and supported by correct invoices; travel services are generally eligible while personal consumption items are excluded. The tax charged depends on the place of supply: intra State supplies attract CGST and SGST, inter State supplies IGST. Claiming CGST/SGST credit is subject to supplier return filings and cannot be cross utilised across States; options include IGST invoices, registration in the supplier's State, or routing credits via an ISD.