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ITC IN HOTEL STAY

ITC / Input 308 views 1 replies

Manoj

Student

269 Points Joined November 2013

Our PAN india business, HO(Mumbai) employee comes in rajasthan for business purpose and stayed in hotel. Our RJ GST given hotel and same claimed ITC in RJ. Gst.

Question : Is gst is ineligible if HO(Mumbai) employee stay in RJ hotel ? GST dept. Said ITC is ineligible.

Replies (1)

CA Amit Rathore

Chartered Accountant

145 Points Joined September 2012

1. ITC is eligible only if your company has a Rajasthan GSTIN and the hotel invoice mentions that GSTIN.

2. Place of supply for hotel stay is Rajasthan (Section 12(3), IGST Act).

3. If RJ GSTIN is used and invoice is in company’s name, ITC is valid.

4. If no RJ GSTIN, and hotel charges CGST+SGST, then ITC is ineligible.

5. HO (Mumbai) GSTIN cannot claim CGST+SGST of Rajasthan — must be treated as cost.

Regards
CA Amit Rathore
Rathore Tax consultant