ITC on Hotel Accommodation inclusive of food

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This discussion clarifies whether Input Tax Credit (ITC) can be claimed on hotel accommodation that includes food and beverages, where these costs are not itemised separately. While the hotel provides taxable services, the place of supply is determined by the hotel's location, meaning SGST and CGST are charged. This allows businesses to claim ITC on these specific taxes.

shivangi

shivangi (Querist)
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10 August 2023 Hello
Can ITC be availed on the Hotel Accommodation which is includes food & Beverages.
Food is Complimentary expenses to the accommodation, cannot be segregated.
Thank You

RAJA P M

RAJA P M (Expert)
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10 August 2023 For food it's possible... But, The lodge and room fare can be avail...

Mukesh Sikarwar

Mukesh Sikarwar (Expert)
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11 August 2023 Hotels provide taxable services. The place of supply is the state where the hotel is situated, even if the company of the business traveller has the GSTIN of another state. This means that the hotel has to charge SGST and CGST. This further implies that the company can claim Input Tax Credit on SGST and CGST.

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shivangi

shivangi (Querist)
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14 August 2023 Thank you for your Kind reply, please read the question before replying.

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