ITC ON HOTEL STAY AND FOOD FOR DIRECTORS/MANAGERS

[SAFETAB LIFESCIENCE]

Dear Experts,

Our Directors/Managers visiting outstation on business trip .

Please clarify whether we are eligible for ITC for the following cases.

1. IGST charged on Lodging Bills of Other state hotels.

2. IGST charged on Food Bills of Other state hotels.

3. CGST + SGST charged on Lodging Bills of Local state Hotels where our GST registration is held.

4. CGST + SGST charged on Food Bills of Local state bills where our GST registration is held.

AI Summary

Input tax credit on hotel lodging: local CGST+SGST credit claimable; food charges blocked as personal consumption.
Input tax credit eligibility for hotel expenses turns on the place of supply: lodging is supplied at the location of the immovable property so hotels should charge CGST+SGST where the property is in that State and such tax paid by a registrant in that State is eligible as ITC. Food charges that constitute personal consumption are expressly blocked from ITC. GST registration is State-specific, and credits of central and State tax are separately ring fenced and not mutually utilisable.