Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

GST APPLICATION

235 views

Save Share

Soham U

37 Points Posted on 16 May 2020

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.

Aashok Kumar Sharma

Finance/Compliance Consultant

67875 Points Posted on 16 May 2020

It should not happen but I have seen it is happening many times for talking Input Tax Credit in business.

sukhwani keyur

351 Points Posted on 17 May 2020

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.