TaxTMI 
TaxTMI 
XYZ (Maharashtra) had arranged a Customer meet in a Hotel in Bangalore towards sales promotion. The Hotel is ready to issue to separate bills viz. one for food and other for stay. The Hotel will be charging IGST in the invoice issued to XYZ in the name of XYZ, Maharashtra. Can XYZ take input tax credit against the bill for hotel stay?
Admisibility of Input Tax Credit on Hotel Stay
04 Dec 2018 
7 Replies 
3765 Views Asked by
Place of supply rules: ITC for hotel accommodation available only if recipient is registered in the State where the service is supplied.
ITC on hotel accommodation depends on place of supply and recipient registration: accommodation provided and invoiced in the State is an intra state supply attracting CGST and SGST, and ITC can be claimed only if the recipient is registered in that State; invoices charging IGST are not the correct treatment and claiming ITC on such invoices risks future reversal with interest. (AI Summary)
ITC on hotel accommodation depends on place of supply and recipient registration: accommodation provided and invoiced in the State is an intra state supply attracting CGST and SGST, and ITC can be claimed only if the recipient is registered in that State; invoices charging IGST are not the correct treatment and claiming ITC on such invoices risks future reversal with interest. (AI Summary)