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

AI Summary

Input tax credit on inter-branch hotel expenses depends on invoice, service receipt, and distinct person treatment, not payment source.
Input tax credit on hotel expenses for inter-branch travel is considered in the context of separate GST registrations. ITC eligibility depends on the statutory conditions under Section 16 of the CGST Act, including a valid tax invoice, receipt of service, tax payment, and filing of returns, rather than on whether payment is made from the same branch account. Separate registrations are treated as distinct persons under Section 25(4), so payment by another branch does not by itself invalidate the claim, though inter-branch accounting or cross-charge treatment may be required.