Hello .. when a company is conducting a conference meeting in a conference hall that it has rented for a day in a hotel , then can the company claim ITC credit on the GST charged in the hotel bills for conference room accomodation charges and food charges ? The hotel bill is raised on the company's name and GSTIN . Request please clarify .
Availability of ITC on conference bill
Replies (5)
Quick Summary
The information I have learned is as follows; please confirm more authentication of this matter.
Under Section 17 ( 5 ) of the CGST Act,ITC on Food and Beverages etc are categorised as ineligible credit.However ,in case of ITC on Hotel Bill renting of conference or hall or room for busines purpose is not specifically covered under such section.
Further ,in terms of section 16 ( 4 ),ITC will be available on input or input services used or intended to used in the course or furtherance of business.Therefore ITC on loding, renting of conference hall or room for client meeting will be available except UTC charged on food and beverages consumed during the meeting..
Under Section 17 ( 5 ) of the CGST Act,ITC on Food and Beverages etc are categorised as ineligible credit.However ,in case of ITC on Hotel Bill renting of conference or hall or room for busines purpose is not specifically covered under such section.
Further ,in terms of section 16 ( 4 ),ITC will be available on input or input services used or intended to used in the course or furtherance of business.Therefore ITC on loding, renting of conference hall or room for client meeting will be available except UTC charged on food and beverages consumed during the meeting..
I think if your GST No. is of same state you can take credit as hotel person charge there state CGST and SGST
It will depend upon two considerations, one is place of supply and another is wether the hotel raises bill as consolidated as per composite supply.
ITC not available on composite supply Food Bill and rented hall bill. you may take seprate invoice 1 food and beveraged 2 conference hall bill for ITC.
Split the bill into two parts:
• Food and beverages: ITC is blocked (Sec 17(5)(b)(i)), unless you are in the business of catering or event management and supply food onward.
• Conference hall rental: ITC is allowed in principle, but the place of supply is the hotel's location (Sec 12(3)(c) IGST, services for organising a function or by way of accommodation in immovable property). The hotel charges CGST + SGST of its State.
– Hotel in the same State as your registration: ITC available.
– Hotel in another State where you are not registered: you cannot take that State's CGST/SGST in your home GSTIN, so the ITC is lost.
• Fix for out-of-State events: get the hotel to bill your registration in that State if you have one. Some companies take a temporary or casual registration for large events (rarely economical).
• If the hotel bills a composite "conference package" (hall + food), the principal supply decides the rate, but the ITC block on food still applies to the food element. Insist on itemised billing.
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