ITC eligibility on hotel expenses incurred for inter branch travel (payment from a different branch)

[Abhijeet Mane]

ABC has one branch in Delhi and another branch in Noida. Both branches have separate GST registrations (different GSTINs) and separate bank accounts, but they operate under the same PAN.

An employee of the Delhi branch travels to Noida for official work and stays at a hotel in Noida. The hotel invoice is issued with the GSTIN of the Noida branch. However, the payment for the hotel stay is made from the Delhi branch's bank account.

Can Noida GST Registration avail ITC of hotel invoice. Give some reference if avbl

[Raam Srinivasan Swaminathan Kalpathi]

Dear Querist

There is not much clarity from the department on these issues. As per the extant provisions, the hotel considering the POP of services will only issue an invoice charging CGST and SGST. The employee had visited the Noida branch for purposes of the business of the Delhi branch. ITC, in my opinion, CANNOT be availed by the Noida branch. Please hold on for the opinion of the other learned panelists and then take a decision.

AI Summary

Input tax credit on hotel expenses for inter-branch travel when invoice and payment belong to different GST registrations Input raises whether input tax credit may be availed on a hotel invoice for official inter-branch travel when the invoice is issued in the name of one GST registration but paid from another branch's bank account. The question concerns separate GST registrations under the same PAN and asks whether the registration named on the invoice can claim credit despite payment being made by a different branch. Reference material on this GST credit eligibility issue is requested.