A registered person in Maharashtra was charged IGST by a hotel in Karnataka, but tax authorities are denying the input tax credit (ITC) claim. While the hotel's charging of IGST was incorrect for services within India, officers are reportedly right to disallow the ITC. This is because hotel services typically attract CGST and SGST, not IGST, when provided within the same state. However, some suggest defending the ITC claim due to the hotel's error.
25 April 2022
Sir, I am a registered person in Maharashtra and for business purpose had travelled to Karnataka and stayed in hotel. The hotel charged IGST instead of CGST + SGST. Now the department audit is conducted and the officers are denying the availment of IGST paid by me. Whether, the officers are right ?, if yes, than by which section they can invoke to disallow my availment of IGST?