GST APPLICATION

suppose a proprietor book the hotel for personal use and he provide GST number of his business for ITC ,so will that transaction come under GST?
Replies (2)
Quick Summary
This discussion explores whether a proprietor can claim Goods and Services Tax (GST) Input Tax Credit (ITC) when booking a hotel for personal use using their business GST number. While personal expenses are generally not eligible for ITC under GST or Income Tax laws, it's noted that proprietors sometimes claim this benefit due to the difficulty in distinguishing personal from business expenses. The consensus is that such claims are invalid as personal expenditure cannot be treated as a business expense for tax purposes.

It should not happen but I have seen it is happening many times for talking Input Tax Credit in business.
In any tax law whether it is Income Tax Act or GST Law, personal expenses cannot be claimed as business expenditure. Personal expenses are disallowed and ITC thereon is also ineligible. But still some proprietors are claiming ITC as in case of proprietor it is very difficult to identify personal and business expense, so they take benefit ITC which is ineligible.

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