TaxTMI 
TaxTMI 
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 ?
GST on hotel room rent input use
30 Jun 2026 
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Ineligible input tax credit on lodging services and 5% GST payment in cash are examined for reversal and double recovery issues.
GST treatment of hotel lodging service tax liability where input tax credit is claimed against supplies taxable at 5% without eligible credit accumulation. The discussion addresses whether credit taken on such transactions is ineligible input tax credit, whether it must be reversed through the cash ledger with interest and penalty, and whether the output tax already set off against such credit can be demanded again in cash. The competing views note that eligible ITC may be used to pay output tax, but if the credit was wrongly availed, it must be reversed. (AI Summary)
GST treatment of hotel lodging service tax liability where input tax credit is claimed against supplies taxable at 5% without eligible credit accumulation. The discussion addresses whether credit taken on such transactions is ineligible input tax credit, whether it must be reversed through the cash ledger with interest and penalty, and whether the output tax already set off against such credit can be demanded again in cash. The competing views note that eligible ITC may be used to pay output tax, but if the credit was wrongly availed, it must be reversed. (AI Summary)