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Gst charged by hotel

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Dipjyoti Majumdar

CA in service & CS. dipmaj@

2874 Points Posted on 16 December 2022

Dear Forum

We are gst registered in state of Maharashtra.

Our employees went to Delhi to attend a seminar and stayed in Delhi hotel. The hotel has charged c/sgst.

We do not have registration in Delhi.

Could it have charged IGST to Maharashtra so as to avail the ITC ?

Regards,

Replies (4)

Quick Summary

This discussion clarifies GST charges on hotel accommodation when employees travel for business. If your business is registered in Maharashtra and your employees stay in a Delhi hotel, the hotel correctly charges Central GST (CGST) and State GST (SGST). This is because the 'place of supply' for accommodation services is determined by the location of the immovable property (the hotel), which is Delhi in this case, as per Section 12(3)(b) of the IGST Act, 2017. Therefore, Input Tax Credit (ITC) for this GST cannot be claimed in Maharashtra.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121521 Points Posted on 16 December 2022

Not possible. The point of supply being Delhi.

Sravan Yelagandula

Employee

73 Points Posted on 16 December 2022

The place of supply has been defined under Section 12(3) (b) of IGST Act, 2017 read as follow: “the place of supply of services by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called, and including a house boat or any other vessel shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be located.”