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itc claim

naren karthick (work) (32 Points)

17 December 2018

I have a hotel.I will pay I2% Gst. can I get it input tax?

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MOHAMMED IMRAN (1020 Points)
Replied 17 December 2018

where an inward supply of goods or services or both is used by a registered for making an outward taxable supply, then ITC is available
-if you pay gst on inward supply (purchase) of goods or services and pay gst on outward supply (sale) of same goods or services then you can get itc - hotel business covered under itc scheme

if wrong please correct

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pritesh (CA Final student) (7101 Points)
Replied 17 December 2018

i think there is only 2 rate that is 18% nd 5%

12 % rate has been abolished.
pls check one tym.

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Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 17 December 2018

Hotel means Accommodation & Food(Restaurant)

Supply of food in Restaurant will 5% Without GST (As per Notification 46 /2017 CT (r) , )
Except Restaurants in hotel where room tariff is 7500/- or more , charge 18% with full ITC

And As per Notification 13/2018 CT (r) :
The GST on Hotel room rent will be charge on Trnasaction value Not on Declare Tariff Rate

GST Rates for Hotel (As per Transaction Value)
Upto 1000/ Its Nil
1000 to 2500 its 12%
2500 to 7500 its 18%
above 7500 its 28 %

Hence You can claim credit only on ITC attributed to inward supply in regard to Renting of Rooms

**Take the Credit According to Rule 42