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RESIDING IN HOTEL

08 April 2020

Is there any provision that if a person resides in a hotel of his state(place of registration) then INPUT TAX CREDIT is available. But if he goes to other state and resides in a hotel INPUT TAX CREDIT will not be allowed.

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11 Replies

Rajkumar Patel (602 Points)
Replied 08 April 2020

In Act, there is no provision till now, on my opinion.

RAJA P M ("Do the Right Thing...!!!") (127069 Points)
Replied 08 April 2020

@ Mr Harshit Acharya.,

Yes... You are exactly correct.

No more specific provision for that...
But,
As per place of supply the Hotel charging GST as intra state supply...
So,
In Taxpayer's state it's CGST & SGST charged by hotel and The Receiver can get ITC...

The same way the Other State hotel charging as their place of supply and they Charge CGST and SGST. It's not available to take as ITC in other states...

Harshit Acharya (404 Points)
Replied 08 April 2020

Isn't it a wrong thing..The law should be changed..When he has paid the amount , allowing if intra state and disallowing if inter state is stupid. Isn't it?

RAJA P M ("Do the Right Thing...!!!") (127069 Points)
Replied 08 April 2020

Yeahhhh...
But, Here the law view based on place of supply of hotels. Here we can't take view of person... 😔😔

Harshit Acharya (404 Points)
Replied 08 April 2020

Thank you sir.

RAJA P M ("Do the Right Thing...!!!") (127069 Points)
Replied 08 April 2020

Welcome...

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 09 April 2020

STAY IN HOTEL

stay with in state where person has registered place of business = ITC is available

stay in other state = ITC is not available

Important Note : It is not mentioned in Block Credits u/s 17(5) BUT

Due to Sec 12(3) of IGST ACT 2017

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 09 April 2020

In Simple word : Hotel will never charge IGST on his bill , so cannot avail ITC if you are registered in state other than the hotel is located.

RAJA P M ("Do the Right Thing...!!!") (127069 Points)
Replied 09 April 2020

Dear Mr Pankaj Rawat Ji.,

Why hotel can't charge IGST...?!
Any reason please...

surendra roy (56 Points)
Replied 09 April 2020

In cases of certain services , place of supply can be determined based on place of service received

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 10 April 2020

Dear Mr. Raja Ji
As per Section 12(3) , the POS in case of Hotel is where the Hotel is located.

Exception : 48/22/2018 GST :
Hotel Services availed by the SEZ developer or SEZ unit for authorised operations , IGST is applicable