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ITC TO HOTEL ROOM

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Mahendravarman

Accountant

42 Points Posted on 29 October 2021

Our Director hotel room booked to him own name for accommodation to vendor industrial visit, That room bill raised along with GST on our director name. May i take this bill To ITC and How to treat this bill in books of accounts (Reg.Director(DIN HOLDER) , Salaried person).

Replies (2)

Quick Summary

This discussion explores whether a company can claim Input Tax Credit (ITC) on a hotel room bill raised in a director's name for a vendor visit. The key conditions for claiming ITC are that the invoice must be in the company's name, include the correct GSTIN, and the CGST/SGST must be from the company's state. If these criteria aren't met, ITC cannot be claimed.

CA ABHAY GUPTA

Practice

1639 Points Posted on 29 October 2021

Firstly to take credit invoice must be raised in the name of taxpayer, secondly the GSTIN must be mentioned in the invoice raised, thirdly the CGST and SGST must belong to the State of person taking ITC. For instance ABC PVT LTD booked hotel registered in the state of UP then GSTIN of ABC PVT LTD must be mentioned in invoice and the hotel must be in UP so that they can charge CGST and SGST of UP, if hotel located in other state then they will charge CGST and SGST of that state and we cannot take ITC. thus if in your case all 3 conditions are satisfied then you can claim credit.