GST CREDIT

[Mathew George]

Hi,

My client is a Travel agent(in kerala) who books Hotel and accommodation for his clients, The hotel may be located in the state (kerala) or out side (Tamilnadu) the state and they will charge CGST and SGST. Now the question is whether the travel agent can claim both CGST and SGST...?

[SHIVKUMAR SHARMA]

GST Registration of Service Provider & Service receiver & Place of Supply is of same State than Credit is available Otherwise not.

[Ganeshan Kalyani]

In my view, yes.

[Mathew George]

Looks like we cannot set off SGST of one state with other state right...? But we can set off CGST of one state with another... Correct me if i am wrong

[DR.MARIAPPAN GOVINDARAJAN]

Your logic is correct. Please try.

AI Summary

Input tax credit: available only where supplier, recipient and place of supply are in the same state; SGST non-transferable.
Input tax credit for hotel bookings by a travel agent is available only where the supplier, the recipient and the place of supply are in the same state; otherwise credit is not available. SGST paid in one state cannot be set off against SGST liabilities in another state, while CGST set-off across states is treated as permissible in the discussion.