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Itc on hotel bill

Kunal Nitin (16 Points)

07 June 2020

Sir, how Can ITC be claimed on hotel room rent bill and fooding?

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15 Replies

Padmanabhan (Student) (1321 Points)
Replied 07 June 2020

Fooding is not allowed

KRISSHNAN KP (4215 Points)
Replied 07 June 2020

It is blocked credits

Vidit Seth (Practicing CA) (76 Points)
Replied 07 June 2020

However ITC on Room bill stands admissible if the stay is for furtherance of business.
Further it is advisable to take room with food plan , then you can avail complete ITC

1 Like

Shivam RC (Student) (23683 Points)
Replied 07 June 2020

As per the Provision of Section 17(5) clause (b) of the CGST Act 2017, Input Tax Credit ( ITC ) on Food and Beverages is BLOCKED. Hence you cannot claim ITC on Fooding Bill.

As far as the Hotel Accommodation Bill is concerned, you can claim ITC provided that it was a Business Trip.

Regards,
Shivam RC.

3 Like

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 07 June 2020

ITC block for Food & beverages & can claim ITC on Hotel accommodation but subject to condition that Hotel is in same state in which you are registered.

(Hotel cannot charge IGST )

1 Like

Vidit Seth (Practicing CA) (76 Points)
Replied 07 June 2020

The place of supply of hotel will never change in case of accommodation so there is no case when it charges IGST.
However the travellers from other states can travel use accommodatiom service take invoices with CGST and SGST and take credit. So travelers from other states can avail this benefit.
This is my opinion , please correct me if I am wrong.

gowtham (Audit executive) (70 Points)
Replied 07 June 2020

Normally, ITC is blocked for food and beverages u/s.17(5). because it will be considered as personal consumption in business purpose.

But, suppose you took the services of hotel and provide the same service to your client.then ITC will be allowed with out any hesitation.

you booked the accomodation service to your client from the third party hotels, then undoubtedly u can avail ITC on hotel bills, because it will comes under further supply.

same way for food also.

otherwise, reimbursement of hotel bills with service charge is a supply. then ITC will be allowed.

as per statutory you are liable to provide food and accommodation service to employees, then u will eligible for ITC.

in any other case ITC will not be allowed

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 08 June 2020

@ Visit

Can you explain me how can I claim ITC for CGST/SGST charged therein in the bill from other state.
Kindly Refer Section 16(2)(a) & Section 31 of CGST Act , Read with Rule 46

Samir Kumar Mahapatro (AGM(Finance)) (29 Points)
Replied 09 June 2020

In my opinion also we can not avail credit on cgst and sgst of other states.

kartheek kumar reddy (student) (82 Points)
Replied 15 June 2020

You can avail the credit on CGST but you can't avail the credit on SGST(RECIPIENT doesn't have a GST REG in PROVIDER State) because GST is a destination based tax so it must go to the consumed state i.e; PROVIDER STATE. You can claim both SGST & CGST if you have ISD REG..

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 17 June 2020

Kindly refer Section 49 of CGST act

CA Ruby Bansal (Finance Professional) (5294 Points)
Replied 28 June 2023

ITC on hotel room rent: ITC can be claimed on hotel room rent if it is incurred for business purposes, such as for accommodating employees, hosting clients, or conducting business meetings. However, ITC cannot be claimed for hotel room rent if it is used for personal purposes or for activities that are not related to business.

Sudhir Bande (3 Points)
Replied 17 August 2023

Respected Team,

Please suggest.

We have a contract with a hotel on lease for five years and we paid rent to owner on monthly basis with GST and we sell the room and banquets. kindly suggest can avail input tax on which we paid to our owner.

Sahaj Kapoor (4 Points)
Replied 24 February 2024

Hii..one cannot claim ITC if he is not registered in the State/UT where Hotel is located.So in your case Traveler will not be able to claim Credit unless he complies the above condition.