GST on hotel room rent input use

[KS Bhat]

Hotel (lodging Service) Actual Rate below 7500 per day In the Month of October 2025 RTP has booked sales of Rs 100000 and utilised credit ledger for output ie 12000 rs. not discharged by cash ledger. Enf. Officer visited the premises and informed input wrongly taken hence 1st you need to reverse ineligible input taken ie 12000 by using cash ledger and again you need to discharge output tax liability ie( 5%) 5000 using cash ledger. On 100000 transection total libility will be 12000+5000 17000 Rs tax along with interest and penalty in addition is the officer stand is correct on tax libility ?

AI Summary

Ineligible input credit on hotel lodging services and separate discharge of output tax liability through the cash ledger under GST GST treatment of hotel lodging services taxed below the threshold rate raises the issue whether credit availed on such supplies must be reversed and whether the corresponding output tax liability must then be discharged again through the cash ledger. The discussion concerns an assessment view that ineligible input was to be reversed first and the output tax for the same transaction separately paid in cash, with interest and penalty also indicated as consequential.