GST-ITC ON HOTEL BILLS

[SAFETAB LIFESCIENCE]

Dear Experts,

Our Company Employees/Directors/Guests are staying at Hotels on official visit.

We are getting Loding and Boarding Bills jointly and sometimes separately.

Sometimes, in other state hotels, they are charges only CGST+SGST through our

GST Number is different from their state. Some hotels giving IGST.

1. Shall we avail ITC of IGST and CGST+SGST ???

2. Shall we avail ITC for Loding amount only or Lodging and boading together. ???

AI Summary

Input tax credit on hotel lodging: CGST/SGST credit applies for temporary stays, while food charges are excluded.
Place of supply rules require hotel accommodation consumed within a State to be charged CGST and SGST, making CGST/SGST the appropriate input tax credit heads; temporary lodging for business qualifies for ITC, while food and beverages supplied at such establishments are excluded, and inputs used for exempt supplies (such as nil rated medical services) do not qualify. AAR decisions allowing guest house maintenance credit (excluding food) are fact specific and limited to the applicant and jurisdiction.