We booked hotels, flight tickets, exchanged foreign currency for our staff through Foreign exchange agent. The agent charged GST only on service charge @ 18% Example:- Hotel booking charges - 100000 Service charges 4% - 4000 (Charged by Dealer) GST @ 18% on 4000 - 720 (CGST 360 + SGST 360)
Is the GST charged by Agent is correct ? Or whether we have to pay GST under RCM on hotel booking ? Whether GST has to be charged on 104000 or 4000 ? Can we claim ITC of 720 ? Also give reference to Sections of GST Act.
CAclubindia
