TaxTMI 
TaxTMI 
dear sir/ madam,
can we utilize ITC kept of hotel business with ITC payable on restaurant business, please share case laws in favour of your opinion.
cross utilisation of itc
11 Apr 2025 
6 Replies 
7615 Views Asked by
Input Tax Credit common pool allows cross utilisation of hotel credits against restaurant tax liabilities under same GST registration.
Cross utilisation of Input Tax Credit allows credit from one business activity to offset tax on another activity under the same GST registration because ITC forms a common pool and does not require one to one correlation, subject to blocked credits under Section 17(5) and proportionate reversal rules for exempt supplies; appellate and tribunal authorities (Aristo Bullion, Larsen & Toubro) and CBIC guidance support this position, and recent Kerala High Court commentary rejected penalisation for using IGST credit across CGST/SGST heads when statutory conditions are satisfied. (AI Summary)
Cross utilisation of Input Tax Credit allows credit from one business activity to offset tax on another activity under the same GST registration because ITC forms a common pool and does not require one to one correlation, subject to blocked credits under Section 17(5) and proportionate reversal rules for exempt supplies; appellate and tribunal authorities (Aristo Bullion, Larsen & Toubro) and CBIC guidance support this position, and recent Kerala High Court commentary rejected penalisation for using IGST credit across CGST/SGST heads when statutory conditions are satisfied. (AI Summary)