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how to claim ITC charged by hotel ?

16 March 2019

Please advise me .. if interstate hotel charged cgst + sgst how to i claim ITC ? also i have not any other registration.

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8 Replies

g mahesh Mundra (Business and tax consultant) (3296 Points)
Replied 16 March 2019

in bill your gst is mentioned

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durgesh (student) (222 Points)
Replied 18 March 2019

u cannot claim in your state

Saravana kumar (Tax Consultant) (170 Points)
Replied 18 March 2019

Food items no itc is entitled., If you are doing business like hotel any furtherance of supply then you are eligible. In General business food and human consumptions are not eligible to avail itc.

durgesh (student) (222 Points)
Replied 18 March 2019

sarvana kumar ...he might be talking about accommodation expenses which is allowable wheb u go for business meet

the basoc concept being...how can u take credit from other state to setoff against ur own state liability......u cannot....if u want to take credit..takea seperate registration in that state

manoj singh (71 Points)
Replied 18 March 2019

durgesh ji ...i want to read more about this can you suggest me section ? that i can not take credit of the same.

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durgesh (student) (222 Points)
Replied 18 March 2019

Lets first start 2hy cgst qnd sgst is charged and not igst

2. Definitions (CGST Act)

[21] "central tax" means the central goods and services tax levied under Section 9;

Lets find the meaning of central tax

9. Levy and collection. (CGST Act)

[1] Subject to the provisions of sub-section [2], there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption.

Now what does intra state supply mean

[65] "intra-State supply of services" shall have the same meaning as assigned to it in Section 8 of the Integrated Goods and Services Tax Act;

Now let's visit section 8 of IGST

8. Intra-State supply.

[2] Subject to the provisions of section 12, supply of services where the location of the supplier and the place of supply of services are in the same State or same Union territory shall be treated as intra-State supply

Now lets looking at your case..it seems that location and place of supply are in same state......and this makes its clear that tax is charged on basis of place of supply

12. Place of supply of services where location of supplier and recepient is in India. (IGST Act)

[3] The place of supply of services,-

[b] by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called, and including a house boat or any other vessel; or

[c] by way of accommodation in any immovable property for organising any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property; or

[d] any services ancillary to the services referred to in clauses [a], [b] and [c], shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be located

So CGST and SGST charged.

Now whether to availed credit or not

From above it is clear that all things happened in one state which has nothing to do with your registered state

And also gst registration being state specific all similiar PAN member need to take different registrations different states.

Moreover one state sgst account is managed seperately from other states...so how can one state allow u to adjust other state credit against its liability....apne ghar main biryani bani h...uska credit bajuwale ko kyu denge...just think for a moment 😀