ITC ELEIGIBILITY FOR EMPLOYEES OUTSTATION TRIP STAY, TICKETS ETC, Goods and Services Tax - GST

[SAFETAB LIFESCIENCE]

Dear Experts,

Our comopany staff use to travel frequently for marketing purpose and stay at outstations.

Can we avail ITC of the GST paid Flight Tickets charged by flight operators, GST paid on Travel agency's bills, hotel bills. We are getting bills with IGST from outstation parties and CGST+SGST for local bills properly.

For e.g., Our company is in Pondicherry and our employees are staying in Mumbai. Some hotels are giving only CGST+IGST bills as their place of supply is Maharastra. In that case, shall we take ITC of that CGST and SGST ???

Posts / Replies

[KASTURI SETHI]

Yes. In pre-GST era, credit of VAT was for respective State only. Now SGST correspondents to erstwhile VAT.

[VaibhavKumar Jain]

ITC of CGST and SGST charged by hotel in another State can only be taken through ISD route, otherwise you can't avail such credit.

[SAFETAB LIFESCIENCE]

Dear Team,

Thanks for all your replies. Thanks to Mr. Vaibav for today's reply.

[KASTURI SETHI]

Sh.Jain Ji,. Your hardwork and search is appreciable. I think ISD route is foolproof and hassle-free. Nothing is lost if an assessee is registered as ISD but this was the sword of 'place of supply' will relegated to the background.

[PARTHASARATHY V]

Sir,

While officials traveling other states and stay involved there the service provider should give the bill only on CGST and SGST, In this situation you have to register as ISD (Input service Distributor) then get the bills in that GSTIN number, further pass on the credit to the respective location if you have multiple location operation or a particular location to which the expenses involved.

Also any other common expenditure involved that also can be routed through ISD.

[KASTURI SETHI]

Thanks Sir for enrichment of my knowledge.

[A K Reddy and CO]

Hi If u want to avail CGST and SGST paid in a particular state as ITC, U should have a registration in that state else the invoice should be an IGST invoice. Even it was clear that a particular state's CGST credit cannot be set off against the other state's liability, similarly with SGST credit also.