Should i upload purchase invoices?

You cannot claim input tax credit on restaurants. Section 17(5) of CGST Act specifically mentions that input tax credit cannot be availed on supply of ‘food and beverages’, inter alia

Input tax credit on hotels (that is, staying in a room) is allowed.

But even in case of hotels, there is a minor problem. If you are registered in Mumbai, and one of your executives travels to Delhi and stays in a hotel in Delhi, then the input tax credit of the GST charged by the hotel in Delhi will not be available against the output tax liability.

This is because that Delhi hotel cannot charge IGST. In case of hotels, the ‘place of supply’ will be the place where the hotel is located. This means that, when your executive travels to Delhi for a meeting, the hotel will charge CGST and Delhi SGST, even if the invoice is in the name of the company located in Mumbai. The credit of Delhi CGST cannot be availed against output liability of Maharashtra SGST or even CGST on supplies from Maharashtra. So, that’s a loss.

The net position is this -

• Input tax credit of restaurants is not allowed.
• Input tax credit of hotels is allowed.
  • But if the hotel is located outside your state and you don’t have a registration in that state, then you will not be able to utilise the input GST that you paid to the hotel.