Gst on hotel bill out of maharashtra

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 April 2018 hi.. i have doubt related to hotel bill we have received one bill from particular hotel in which we had one function (sir's wedding) they added CGST & SGST if though we have provided our GST no which comes under Maharashtra state and also tell me whether we get ITC in hotel bill or not?

Expert : Anonymous

Expert : Anonymous (Expert)

04 April 2018 Bill raised by hotel is correct as place of supply in this case is Maharashtra & you can claim ITC of same.

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2018 but the function was held in jodhpur and our CA told us we can not get ITC for hotel bills, it this correct?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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27 July 2024 When it comes to GST on hotel bills, especially for events like a wedding, there are several aspects to consider. Here’s a detailed explanation addressing your concerns:

### 1. **GST on Hotel Bills Outside Maharashtra**

**Hotel Bill Location and GST Rates:**
- **Location of Service:** The location of the hotel where the function was held (Jodhpur, in this case) determines the applicable GST rates. Since Jodhpur is in Rajasthan, the GST charged on the hotel bill should typically be the **Rajasthan GST rates**, which would be CGST and SGST, not IGST, assuming the service is within the same state.

If the service is provided within the same state (Rajasthan in this case), the hotel should charge **CGST (9%)** and **SGST (9%)** totaling **18%** GST.

- **Cross-State Transactions:** If the function was held in Jodhpur and the hotel bill was issued to a company registered in Maharashtra, normally, IGST would be applicable if the service was provided across state lines. However, in this case, it seems the hotel charged CGST and SGST, which might be an error unless the place of supply is considered within the same state.

### 2. **Input Tax Credit (ITC) on Hotel Bills**

**Eligibility for ITC:**
- **ITC on Hotel Bills:** Generally, ITC on hotel bills can be claimed only if the expenses are related to the business and the nature of the supply qualifies for ITC. However, there are specific rules governing this:

- **For Business Purposes:** ITC can be claimed on hotel bills if the stay or service is used for business purposes. For instance, if the hotel accommodation is used for business meetings or events related to the company’s operations, ITC can be claimed.

- **For Personal or Social Functions:** ITC is not allowed for personal or social functions like weddings. Since the function you mentioned is a wedding, which is a personal event, ITC is generally not available for this expenditure.

### 3. **Practical Steps and Considerations**

**Review of GST Charges:**
- **Check GST Invoice:** Verify the GST invoice from the hotel to ensure it is correctly issued according to the location and applicable rates. If there is an error, you should contact the hotel for a revised invoice.

**Consultation with CA:**
- **CA’s Advice:** Your CA's advice aligns with the general rule that ITC on hotel bills for personal functions (like weddings) is not allowed. However, if there was any business-related component to the event, you should provide detailed information to your CA to review the possibility of claiming ITC.

**Documentation:**
- **Invoice and Documentation:** Ensure you keep all invoices and documentation related to the event. If there is any dispute or need for clarification, having these documents will be helpful.

### Summary

1. **GST Rates:** For a hotel in Jodhpur, the applicable GST should be CGST and SGST if the service is considered within the same state. If it is a cross-state service, IGST should apply. Review the invoice for correctness.
2. **ITC Eligibility:** ITC on hotel bills is not allowed for personal events like weddings. ITC is generally allowed for business-related expenses, provided they meet the criteria under GST laws.
3. **Consultation:** Follow up with your CA for further clarification, especially if there are business-related aspects to the expenditure.

For accurate advice tailored to your specific case, especially in complex situations, consulting with a GST professional or tax advisor is recommended.