ITC on dealer meet organized on behalf of Company

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....TC on dealer meet organized on behalf of Company <br> Query (Issue) Started By: - Rajat Gupta Dated:- 2-8-2025 Goods and Services Tax - GST <br> Got 2 Replies <br> GST<br> <br> A taxpayer engaged in cement trading organises a dealers meet in a hotel on behalf of the supplier company. The hotel issues an invoice as catering services to the taxpayer. The taxpayer will recover this amount from the Co....

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....mpany. On these facts, I have the following 2 queries: 1. What document needs to be issued by the taxpayer to the Company to recover these expenses? A tax invoice as catering service or any other document mentioning reimbursement expenses. 2. If the taxpayer can issue tax invoice to the Company, can the taxpayer avail ITC on inward catering services received from the Hotel? Note: Can we refer prov....

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....iso to Section 17(5)(b)(i) to say that the inward supply of catering services has been used to make an outward supply of the same? --Reply By: Sadanand Bulbule The Reply: The fulfillment of following proviso to Section 17[5][b][i] is crucial to determine the eligibilty to claim ITC: Provided that the input tax credit in respect of such goods or services or both shall be available where an inwar....

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....d supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply; Meaning: ITC would be allowed only if the catering is used as an element of an outward taxable supply of service to be billed as a composite service to the company. Substantiating co....

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....ntract/agreement is necessary to prove it. --Reply By: Shilpi Jain The Reply: In this manner the taxpayer may be able to take credit. However, ultimately if its an outdoor catering service then the supplier company will not be eligible for credit. You could see if there is any other possibility to enable the entire credit. <br>***<br> Discussion Forum - Knowledge Shari....

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