17(5)(g) Disallowance

[Niilesh Zaveri]

If expenditure is incurred on the stay and food of the employee of the Customer of the registered person, can the ITC refund be disallowed when the entity is exclusively engaged in export of services?

Need Case Law to support the view

AI Summary

Eligibility of ITC Refunds on Employee Accommodations and Meals under GST Clarified; Meal Expenses Face Restrictions. A query was raised regarding the eligibility of Input Tax Credit (ITC) refunds under GST for expenses on employee accommodations and meals, particularly when an entity is solely engaged in exporting services. Amit Agrawal responded, clarifying that while expenses on hotel accommodations for business tours are not for personal consumption and thus eligible for ITC, meal expenses are subject to restrictions unless legally obligatory for the employer. He also noted potential controversies regarding ITC on residential rent for employees. Ganeshan Kalyani added that eligibility for credit is a prerequisite for considering refunds.