Admisibility of Input Tax Credit on Hotel Stay

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..... Admisibility of Input Tax Credit on Hotel Stay
Query (Issue) Started By: - Kaustubh Karandikar Dated:- 4-12-2018 Last Reply Date:- 9-12-2018 Goods and Services Tax - GST
Got 7 Replies
GST
XYZ (Maharashtra) had arranged a Customer meet in a Hotel in Bangalore towards sales promotion. The Hotel is ready to issue to separate bills viz. one for food and other for stay. The Hotel will be c .....

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..... harging IGST in the invoice issued to XYZ in the name of XYZ, Maharashtra. Can XYZ take input tax credit against the bill for hotel stay? Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: Since it is in furtherance of busines ITC is eligible. Reply By Alkesh Jani: The Reply: Dear Sir, In this regards my point of view is that, the Hotel cannot charge IGST, for this purpose the definition of locat .....

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..... ion of supplier give at Section 2(15) (a) of IGST,2017 may be taken into account, further, as the Hotel is located in the state and services are also supplied in the same state, in terms of Section 7(3) of the IGST, Act,2017, is not applicable. Moreover, Section 12 (3)(b) of IGST, Act,2017, clearly states and mentions of Hotel, for which place of supply will be "Intra-state". In view of above, a .....

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..... lthough, Hotel is ready to issue Invoice charging IGST, it is not advised to take the ITC. If audit is undertaken of Hotel even after 4 years, and if the same credit is disputed, XYZ is required to be reversed along with interest. Any different view by our experts in the matter is highly solicited. Thanks, With regards, Reply By YAGAY andSUN: The Reply: We endorse the view of Mr. Jani as Hote .....

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..... l is liable to Charge only CGST + SGST and the ITC is claimed only when the service recipient is registered at this very State where such services are being provided. Reply By SHIVKUMAR SHARMA: The Reply: I agree with the Reply of Shri Alkesh Jani. Reply By KASTURI SETHI: The Reply: Well done by Sh.Alkesh Jani. Reply By Alkesh Jani: The Reply: Dear All, Thanks for your support. With regard .....

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..... s, Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: The service recipient will register in Karnataka only he does supply in that State. Otherwise not required.
Discussion Forum - Knowledge Sharing .....

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