Availing IGST credit, Goods and Services Tax - GST

[Chidambaram Subramaniam]

Dear Sir,

Our Company provide temporary accomodation to many of the outstation candidates at the time of joining the company through a vendor and the vendor charges IGST in all their invoices.

My Query is whether the company can avail credit of the IGST charged by the vendor for such nature of expenses.

Please guide us.

thanks and regards

Chidambaram

Posts / Replies

[KASTURI SETHI]

Dear Querist,

Will such expenses form part of Profit & Loss Account in the Company's Annual Report/Balance Sheet ?

[Chidambaram Subramaniam]

Dear Sir,

Yes, It forms part of our P&L account and balance sheet.

Regards

Chidambaram

[KASTURI SETHI]

In my view, this activity conforms to the definition of " ---------------------in the course of business or furtherance of business of the Company. Credit of IGST is admissible, if you qualify other conditions. Needless to say expenses of P&L Account are part of business.

[DR.MARIAPPAN GOVINDARAJAN]

Your company can avail credit.

[Brijesh Verma]

I am sorry but I am not able to comprehend as to how your vendor can charge IGST in respect of accommodation services! Please throw some light. Experts may correct my understanding if I am wrong.

[CASusheel Gupta]

Agree with experts, however

1) the vendor can charge only CGST+SGST

2) ITC allowed whether it is IGST/CGST+SGST