ITC on hotel for business trip

This discussion clarifies whether Input Tax Credit (ITC) can be claimed for hotel expenses incurred during a business trip. The key issue is the Place of Supply (POS), which for inter-state hotel stays is the location of the hotel. If you are registered in Punjab and book a hotel in Gujarat, CGST and Gujarat SGST will apply. As a Punjab-registered entity, you generally cannot claim credit for CGST and Gujarat SGST, meaning ITC on the hotel stay is not permissible.