GST inout on Hotel Bill

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This query is : Resolved

Quick Summary

If a hotel charges you CGST and SGST on your bill, you generally cannot claim input tax credit (ITC) for this, especially if your GST registration is in a different state like Delhi and the hotel is in Kolkata. This is because, according to Place of Supply (POS) rules for services, the location of the hotel dictates the tax charged. However, if the hotel bill is for accommodation in Delhi for business purposes, you may be able to claim the input tax credit.

RAJ

RAJ (Querist)

31 July 2021 Kolkatta Hotel bill charged GST , Whereas Our GST regn is in Delhi, Can we take input Tax Credit on GST charged by Hotel .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

31 July 2021 Hotel can't charge IGST hence ITC can't be taken.

RAJ

RAJ (Querist)

31 July 2021 Hotel has charged CGST & SGST

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

31 July 2021 ITC can't be claimed in such a case.

Message likes : 1 times

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

31 July 2021 according to POS rules for services, section 12(3) of IGST Act POS shall be location of hotel itself so it has correctly charged C+S and no input tax credit can therefore be claimed by you as IGST has not been charged.

RAJ

RAJ (Querist)

31 July 2021 Can We take input if hotel Bill is of Delhi

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

31 July 2021 Yes, in case of accommodation bill for business purposes.

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