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Gst input tax credit on flight tickets

ITC / Input 35184 views 10 replies

Ganapati Hegde

16 Points Posted on 07 July 2018

Dear experts,

Wheteher flight tickets charges paid by the company towards employees official tour GST input is available? The employees submitted GSTIN of the company and credit is reflecting in the GSTR-2A. As per the Sec 17(5) of CGST Act it excludes the credit in respect of motor vehicles and other conveyance.

As per the Sec 2(34) of the CGST Act a vessel, an aircraft and a vehicle.

Hence, my query is, whether the air ticket charges are excluded by the definition of Sec 2(34) of the Act?

Replies (10)

Quick Summary

ITC on flight tickets used for official business travel is generally allowed if the expense is for business purpose and invoice is in company name with GSTIN. Section 17(5) restricts ITC on certain goods/services but does not specifically block eligible air travel used for business.

CA Naveen Chand

Chartered Accountant

12739 Points Posted on 07 July 2018

yes can be availed

Ganapati Hegde

16 Points Posted on 07 July 2018

can you please ~~elobarate~~ elaborate

kamlesh

consultant

132 Points Posted on 07 July 2018

no it is not business related ITC for flight

RAJA P M

"Do the Right Thing...!!!"

128147 Points Posted on 07 July 2018

Yes... You can avail the ITC as per GST and the Place of supply is fulfill the Invoice...

But
You can ask the Query then we can analyse the transaction. If you are asking commonly or just a question then You will get common reply from experts like

"Yes... ITC available for Flight Ticket"

that's all

Vinod Babu

24196 Points Posted on 08 July 2018

Yes, ITC can be claimed if the bills bears company name and gst number.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 08 July 2018

Dear Ganapati

I beleive 2 provisions have been confused together

1. 17(5)(a) deals with conveyance which are owned/procured by the business entity. No credit shall be available in that case other than for exceptions. It has nothing to do with flight tickets since credit is taken not for the conveyance as per Section 2(34) but on the service which has been received

2. Section 17(5)(b)(vi) deals with transactions which are non official in nature. Hence, credit shall be available