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

Issue Id: - 113342
Dated: 24-1-2018
By:- SAFETAB LIFESCIENCE
ITC ELEIGIBILITY FOR EMPLOYEES OUTSTATION TRIP STAY, TICKETS ETC

  • Contents

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 ???

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Posts / Replies

Showing Replies 1 to 15 of 22 Records

1 Dated: 24-1-2018
By:- Rajagopalan Ranganathan

Sir,

You have to prove that the expenditure incurred by you are in the course of or furtherance of business. As per section 17 (5) (g) of CGST Act, 2017 gst paid on goods or services or both used for personal consumption of your employees are not eligible for ITC.


2 Dated: 24-1-2018
By:- KASTURI SETHI

Normally employees are deputed officially to attend urgent official work or meetings, seminars training etc. Such tour/deputation will be treated for the business or in the course of furtherance of business. In my view ITC can be taken. Correct invoice must be issued by the service provider. If invoice is incorrect, that can create problem. You are to ensure correctness of invoice before taking ITC.


3 Dated: 24-1-2018
By:- Alkesh Jani

Sir,

I agree with Sh.Kasturiji, ITC can be availed for stay but not for foods and beverages which are specifically excluded in terms of Section 17(b)(i) of the CGST Act.Further, Section 17(b)(iv) "travel benefits extended to employees on vacation such as leave or home travel concession". Here word such as has been used means ITC can be availed other than personal use of employee and which has nexus with furtherance business. The Invoice should be issued properly by the supplier. Please correct me, if I am mistaken.


4 Dated: 24-1-2018
By:- KASTURI SETHI

I agree with Sh.Alkesh Jani. 100% perfect.


5 Dated: 25-1-2018
By:- SAFETAB LIFESCIENCE

Dear Sirs,

Thanks for your replies. I think my question in last para is not answered. That is my major doubt. Please do not mistake me.

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 ???

My major doubt is whether we can avail ITC of other state party's bill wherein CGST+SGST are charged . I know if they charge IGST , we can take credit.


6 Dated: 25-1-2018
By:- KASTURI SETHI

Dear Querist, Your employee went out of State and he received service in the hotel there. Service provider provided service in his state. Hotel owner cannot charge IGST because there is no movement of goods or service out of State. He supplied service within his State and Service was consumed within State. In the situation explained by you, how can he charge IGST in bill ? IGST corresponds to erstwhile CST. Supply was within State. In my view, he can charge SGST and CGST and you can take ITC of same.Your person went there and received service there. Hotel owner (Suplier)did not make movement of goods or services out of State. Thus Service was consumed within State. By preparing the invoice in the name of your co. does not mean service was supplied out of State. Your employee's name with company ' name will be reflected in the invoice. In pre-GST era, asseessees used to take input service credit by mentioning name of employee and co. This is my view. I also request other experts to intervene.


7 Dated: 25-1-2018
By:- Alkesh Jani

Sir, In this regard, my view is you can take credit of CGST and SGST, subject to condition that GSTR-1 and 3B are filed by the supplier. While taking credit there is no restriction that only IGST credit or CGST or SGST credit is to be taken. Moreover, the query raised by you is for the purpose of paying tax and it does not restrict for ITC. Pls correct me if mistaken.


8 Dated: 25-1-2018
By:- SAFETAB LIFESCIENCE

Dear Sir,

Thanks for your reply and guidance. Earlier, we were told if we enter the suppliers GST number of other states and if we try to avail ITC (CGST+SGST), GST portal won't allow. Now, I am clear that even the other state supplier's local tax (SGST+CGST) can also be availed ITC by us. Thanks once again JI.


9 Dated: 25-1-2018
By:- KASTURI SETHI

Sh.Jani Ji, You have echoed my views. Mean to say I agree with interpretation.


10 Dated: 27-1-2018
By:- Himansu Sekhar

ITC of cgst and sgst bills of other states will not be allowed. The clarifications have been issued in this regards. Sgst act does not support such availment of credit.


11 Dated: 28-1-2018
By:- Ramaswamy S

Travel charges (flight, travel agent service etc) are eligible for ITC (IGST).

Boarding and lodging not allowed as ITC. In case of boarding .and lodging the place of supply is intra state supply and not inter state supply


12 Dated: 29-1-2018
By:- KASTURI SETHI

Sh.Himansu Sekhar Ji,

Will you pl. post Board's circular giving clarification in this regard for my knowledge sake ?


13 Dated: 29-1-2018
By:- Himansu Sekhar

Sir, please refer to q 40 and 41 of tweet FAQ available at cbec site.


14 Dated: 29-1-2018
By:- KASTURI SETHI

Dear Sekhar Ji,

You mentioned Board's circular ? FAQs have no statutory force. There is a lot of difference between Board's circular and FAQ, though both have no statutory. However, if it is so, denial of ITC is denial of substantive right to assessee. Need liberalization by way of amendment.


15 Dated: 30-1-2018
By:- Himansu Sekhar

Sir,

I quoting the relevant provisions:

THE _________________ GOODS AND SERVICES TAX ACT, 2017

_________ IS THE NAME OF THE STATE

49 (5) (c) the State tax shall first be utilised towards payment of State tax and the amount remaining, if any, may be utilised towards the payment of integrated tax

(104) “State tax” means the tax levied under this Act;

Hence Bihar State tax cannot be utilised for payment of any other state tax. It is an example .

The FAQ is a clarification as I opined.


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