GST INPUT hotelier

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Property providing both services that is accommodation and restaurant and charging GST at 12% for accommodation and 5% for restaurant service.

Property is on leased ,Does ITC allowed fully on rent paid?

Replies (4)
Please read the following article. You can get some clarity about that....


https://

carajput.com/learn/hotel-industry-under-goods-and-services-tax

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Gst input for hotels arise in the following cases :
1. purchase of any asset . gst is charged by the merchant.
those charges are being considered as input .
2.

In the Goods and Services Tax (GST) framework in India, the Input Tax Credit (ITC) availability depends on several factors, including the nature of the supply, the registered person's business activities, and the specific provisions outlined in GST law and rules. Here's some information regarding the scenario you've described:

  1. Mixed Supply of Accommodation and Restaurant Services: If a property provides both accommodation services and restaurant services, and charges different GST rates for each service (12% for accommodation and 5% for restaurant services), it is considered a "mixed supply." In a mixed supply, the applicable GST rate for the entire supply will be determined by the principal supply, which is the main service that gives the supply its essential character.

  2. Input Tax Credit (ITC) on Rent Paid: In the case of leasing a property for providing accommodation and restaurant services, ITC availability on the rent paid can be a complex matter.

    For further more detailed information on this topic visit:The Impact of a GST Rate Cut on the Hotel and Tourism Industry in India

    To read more such trending content, visit Swipe Blogs.

Rent paid for the purpose of business is subject to availment of input tax credit.

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