Input Tax Credit Treatment For Hotel Service Provider.
This query is : Resolved
Quick Summary
Sudipta Das
(Querist)
20 November 2025
From 22nd Sept onward rate of hotel below 7500 has become 5% without claiming ITC. Now in IMS the invoices for Input goods & Services are accepted. Should the ITC claimed in 3B manually be changed to zero. Or I can keep the same in ITC ledger and pay the Tax Liability in cash.
21 November 2025
From 22nd September 2025, hotel accommodation services with tariffs up to ₹7,500 per day are compulsorily taxed at 5% GST without ITC. Therefore, you must not claim ITC in GSTR‑3B for such supplies. Any ITC reflected in the ledger for inputs/services used exclusively for these rooms must be reversed to zero, and the tax liability should be discharged in cash.
For rooms under ₹7,500, ITC is blocked under Section 17(5) read with the notification.
Yes, ITC claimed in 3B must be changed to zero for rooms ≤ ₹7,500.
For rooms under ₹7,500, ITC is blocked under Section 17(5) read with the notification.
Yes, ITC claimed in 3B must be changed to zero for rooms ≤ ₹7,500.
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Sudipta Das
(Querist)
21 November 2025
Thankyou so much Sir.
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21 November 2025
You are welcome.
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