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What to do if I dont want to Avail ITC

16 June 2023

If I dont want to avail / Claim any itc , what should I do?? ITC showing Available in 2B ... But I dont want to claim ....

Should I make Table 4.A.(5) zero instead of Auto filled ITC amount ??

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7 Replies

CA Mohd Firoz Khan (Chartered Accountant) (108 Points)
Replied 16 June 2023

Hi,

Please let me know the reason for not claiming ITC so that i can suggest properly

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Pritam Mukherjee (48 Points)
Replied 16 June 2023

Sir , Actually there are some doubts
...

Suppose I have booked an Air ticket or Hotel from MakeMyTrip. MakeMyTrip has a service charge of Rs 300/- ... Hence I have to pay GST of Rs 54 (18%) to MakeMyTrip on their service charge. This Rs 54/- will show in my 2B as ITC.

Now I am selling this ticket to my Customer with a Service Charge of Rs 500/- ... Hence I have to pay Rs 90/- (18%) as GST to the Government on my Service Charge..

Now my question is -
Can I claim & utilize this ITC in this case ?? Should I pay 90-54 = Rs 36/- only ??

some CA are saying yes some are saying No. As there is doubt , I thought not to Avail the ITC....

CA Mohd Firoz Khan (Chartered Accountant) (108 Points)
Replied 16 June 2023

As per your case :

1- if you charge 18% on full value (including Ticket Price & Service), Then you can take benefit of ITC having regard to some condition like you should be registered in the state where hotel is in existence or flight embark.

* My View :- the above condition to get ITC of Hotel Booking & Air Ticket Booking, which are difficult to follow so mostly professional suggest not to avail ITC

2- If you charge 5% on full Value as tour operator, Then you can not take benefit of ITC except similar line business ITC.

*My View :- You should select second option

CA Mohd Firoz Khan (Chartered Accountant) (108 Points)
Replied 16 June 2023

Further you can make Table 4.A.(5) zero instead of Auto filled ITC amount.

Pritam Mukherjee (48 Points)
Replied 16 June 2023

Sir ,
As given in condition 1 ....

if I charge 18% on total hotel bill and give it to customer (Where Hotel is situtated in my state & claim the ITC) , What will be the PLACE OF SUPPLY and SAC Code ??

will it come under SAC 998552??

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CA Mohd Firoz Khan (Chartered Accountant) (108 Points)
Replied 16 June 2023

1- Place of Supply : Location of Hotel

2- SAC as mentioned by you is correct

Pritam Mukherjee (48 Points)
Replied 16 June 2023

And if I work on service charge & Commission basis ??

i mean Hotel is giving commission of Rs 100/- and I am also Applying Service charge of Rs 100/-

I am isauing Tax Invoice for both the cases of 18% .

Is this case , What will be place of Supply??