TaxTMI 
TaxTMI 
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
17(5)(g) Disallowance
01 Aug 2022 
3 Replies 
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Input tax credit restrictions: hotel accommodation for business travel claimable, food expenses and residential rent largely disallowed.
GST ITC under Section 17(5) treats hotel accommodation for an employee on business travel as eligible ITC, while employee food expenses are generally ineligible under Section 17(5)(b) unless mandated by law. Rent of residential dwelling paid for employees is legally uncertain and controversial. Any refund claim requires that the credit be eligible as ITC first. (AI Summary)
GST ITC under Section 17(5) treats hotel accommodation for an employee on business travel as eligible ITC, while employee food expenses are generally ineligible under Section 17(5)(b) unless mandated by law. Rent of residential dwelling paid for employees is legally uncertain and controversial. Any refund claim requires that the credit be eligible as ITC first. (AI Summary)