ITC in Hotel Invoice

Yes, A Ltd's Punjab unit can avail GST Input Tax Credit (ITC) on the hotel invoice, provided certain conditions are met.

• The hotel invoice must be in the name of the Punjab unit of A Ltd and must mention the Punjab unit's GSTIN.

• The Punjab unit must have incurred the expense for business purposes.

• GST must be charged by the hotel as applicable (CGST + SGST for intra-state, IGST for inter-state). For hotel stays, the "place of supply" is always the location of the hotel, and usually, CGST + SGST of that state is charged.

• The Punjab unit, being registered in Punjab and having provided its GSTIN, can claim ITC as this is an eligible business expense and the invoice is in its name.

• Since the invoice is on the Punjab unit and GST is paid by the Punjab unit, the ITC claim is valid for the Punjab unit in Punjab, regardless of internal reimbursement arrangements (e.g., head office in Maharashtra reimbursing the Punjab unit for business purposes). ITC eligibility depends on invoice and GSTIN details, not on who reimburses the amount.

• Any transfer of GST amount between internal units does not affect ITC eligibility, as GST law treats each registration (GSTIN) as a separate entity for compliance.

• The Punjab unit must book the invoice and claim ITC in its GST returns, up to the amount of tax shown on the invoice from the hotel.

• If instead the invoice were issued to A Ltd Maharashtra's GSTIN, then Punjab unit could not claim ITC in Punjab—only Maharashtra unit could, and only in Maharashtra.

• Transfer of credit between units across different states is not permitted directly; each GSTIN must avail ITC for invoices in its own name. Internal financial adjustments (GST transfer) are for accounting, not GST compliance.