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Input Tax on Hotel Business

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satyaban sahoo

Business Owner

33 Points Posted on 07 July 2024

I have a registered Hotel Business with room rent below 7500. I am making purchases (housekeeping items, grocery, internet bills, laundry and other items) with GST. I am making sales of Restaurant, Rooms, Swimming Pools and Banquet Halls with GST of 5%,12% and 18%. So I want to know, is my business applicable for ITC? I asked 2 3 CAs of my locality who denied them. But I have some doubts about it, as it will be a burden to pay huge GST without any deductions.

Thanks

Replies (3)

Quick Summary

This discussion explores whether a registered hotel business, with room rents below ₹7500 and making taxable sales (restaurant, rooms, etc.), is eligible to claim Input Tax Credit (ITC) on its GST-paid purchases. Despite local CAs denying eligibility, the business owner seeks clarification due to the significant financial burden of paying GST without deductions. The core question revolves around the conditions for ITC claimability, particularly concerning the nature of business registration.