gst rate and credit eligibility

[Ramakrishnan Seshadri]

Dear Sir,

We kindly request the experts to answer my query.

Our Directors went to hyderabad and stayed in hotel for business purpose. The hotel has charged 18% igst in their bill by mentioning our GSTIN. in tamilnadu.Whether credit is eligible or not and it is correct or not.

Another question is our directors stayed in telengana and do work in andhra pradesh. The telengana hotel has charged 9% cgst and 9% sgst in their invoice. whether it is correct .

Pleae confirm the experts our query

Thanks & Regards,

S.Ramakrishnan

AI Summary

GST Misapplied on Hotel Bills for Directors' Travel: Section 12(3) Clarifies Local Taxes Over IGST. No ITC for Tamil Nadu Firms. A query was raised regarding the correct application of GST on hotel bills incurred by directors traveling for business purposes. The issue involved a Hyderabad hotel charging 18% IGST and a Telangana hotel charging 9% CGST and 9% SGST. Experts clarified that, according to Section 12(3) of the IGST Act, the place of supply for hotel services is the property's location, meaning only CGST and SGST should be charged. Consequently, the IGST charged by the Hyderabad hotel was incorrect. However, input tax credit (ITC) for CGST and SGST is not available to the company based in Tamil Nadu unless they have a branch in the service provider's state.