ITC on the Corporate Outing in foreign country

[Dharmendra Yadav]

Hi,

One of Corporate Client Organised Holiday for employee in foreign country through Indian travel Agent, Travel agent Raised the Bill charging GST on the service Provided by him, Charge of service is based on the package per person

Can we Claim Credit of GST Charge by Travel Agent ?.

[Ganeshan Kalyani]

In my view, Input tax credit is not allowed .

[KASTURI SETHI]

I support the views of Sh.Ganeshan Kalyani Ji.

[Dharmendra Yadav]

Ganeshan Kalyani,

[Dharmendra Yadav]

SIr Can you Provide any support for your view, Such as notification, case law, circular etc

[DR.MARIAPPAN GOVINDARAJAN]

Whether the Holiday trip is part of the agreement of employer-employee relationship? If it is so no credit can be availed.

If the trip is for furtherance of business credit can be availed.

As per your indication it is not for furtherance of business. Then no credit can be availed.

AI Summary

Input tax credit for corporate foreign outings denied when trip is an employee benefit; allowed only if it furthers business.
Input tax credit on GST charged by a travel agent for a corporate holiday abroad depends on purpose: credit is disallowed where the outing is an employer employee benefit without business nexus, and allowed only if the trip is for the furtherance of the employer's business, requiring factual and documentary evidence to establish that business purpose.