This discussion clarifies whether Input Tax Credit (ITC) can be claimed on hotel bills for seminars, specifically concerning rent and food & beverages. While ITC on the hotel rent is generally permissible, the CGST Act, Section 17(5)(b), explicitly blocks ITC claims for food and beverages.
02 September 2025
X is a market research organization. It has individuals as well as non-individuals (like partnership firms, companies) as members. X has arranged market research seminar for members as well as non-members in a hotel. Hotel bill will include rent as well as charges or food & beverages.
Can ITC be claimed on both rent as well as food & beverages OR only on rent?