Input Tax on Hotel Business

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.