Gst on foreign hotel bookings through agent
This query is : Resolved
chamarthi venkatesh
(Querist)
20 January 2018
Dear Expert
We booked hotels, flight tickets, exchanged foreign currency for our staff through Foreign exchange agent. The agent charged GST only on service charge @ 18%
Example:-
Hotel booking charges - 100000
Service charges 4% - 4000 (Charged by Dealer)
GST @ 18% on 4000 - 720 (CGST 360 + SGST 360)
Is the GST charged by Agent is correct ?
Or whether we have to pay GST under RCM on hotel booking ?
Whether GST has to be charged on 104000 or 4000 ?
Can we claim ITC of 720 ?
Also give reference to Sections of GST Act.
We booked hotels, flight tickets, exchanged foreign currency for our staff through Foreign exchange agent. The agent charged GST only on service charge @ 18%
Example:-
Hotel booking charges - 100000
Service charges 4% - 4000 (Charged by Dealer)
GST @ 18% on 4000 - 720 (CGST 360 + SGST 360)
Is the GST charged by Agent is correct ?
Or whether we have to pay GST under RCM on hotel booking ?
Whether GST has to be charged on 104000 or 4000 ?
Can we claim ITC of 720 ?
Also give reference to Sections of GST Act.
Udaya Chandran
(Expert)
20 January 2018
GST charged by Agent is correct
No RCM
GST is applicable on both hotel bookings and agent service
You can take ITC
No RCM
GST is applicable on both hotel bookings and agent service
You can take ITC
chamarthi venkatesh
(Querist)
20 January 2018
Any reference to Sections of GST Act Sir
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