Dear Sir,
Our Company provide temporary accomodation to many of the outstation candidates at the time of joining the company through a vendor and the vendor charges IGST in all their invoices.
My Query is whether the company can avail credit of the IGST charged by the vendor for such nature of expenses.
Please guide us.
thanks and regards
Chidambaram
Input Tax Credit Admissible on IGST for Temporary Accommodation if Business-related, Confirms Expert; CGST/SGST Also Applicable A company inquired about availing Input Tax Credit (ITC) on Integrated Goods and Services Tax (IGST) charged by a vendor for temporary accommodation provided to outstation candidates. An expert confirmed that such expenses are admissible for IGST credit if they conform to business activities and meet other conditions. Another participant questioned the vendor's ability to charge IGST for accommodation services, suggesting that only Central GST (CGST) and State GST (SGST) should be charged. However, it was clarified that ITC is allowed for both IGST and CGST+SGST. (AI Summary)