ITC on hotel rent -Section 17 (5) (g) of CGST act, Goods and Services Tax - GST

[janakiraman iyer]

Section 17 (5) (g) of CGST denies credit on goods and services or both used for personal consumption. In the light of this when an employee travels on business and avails hotel accommodation, whether GST on the hotel rent is eligible for ITC, as the services is consumed by the employee for personal consumptio

Posts / Replies

[KASTURI SETHI]

Employee goes on tour for and behalf of the company. He stays in the hotel for the purpose of company. So if tour is for official purpose, ITC is allowed. If for personal use, ITC is not allowed.

[Rajagopalan Ranganathan]

Sir,

Section 17 (5) (g) of CGST Act, 2017 debars availment of ITC only when the goods or services or both when supplied for personal consumption. However in your case the employee travels and avails hotel accommodation if furtherance of the business. Hence gst paid on hotel rent is available as ITC.

[Ganeshan Kalyani]

Credit is eligible for hotel stay. ITC on food is not allowed.

[CS SANJAY MALHOTRA]

Agree with all experts.

[subramanian vijayakumar]

Yes if it is officelal room'rent paid can be taken as ITC