Hello...
Suppose I have booked an Air ticket from MMT. MMT has a service charge of Rs 300/- ... Hence I have to pay GST of Rs 54 (18%). This Rs 54/- will show in my 2B as ITC.
Now I am selling this ticket to my Customer with Service Charge of Rs 500/- ... Hence I have to pay Rs 90/- (18%) as GST to govt.
Now I want to know , in this case may I utilize the ITC given from MMT Booking i.e. Rs 54 ?? Should I pay 90-54 = Rs 36 only ??
can I claim ITC on Service Charge for Flight / Hotel booking ??
Yes definitely the ITC available on Inward Supply Service charges paid .
Note : Make sure that conditions prescribed in Section 16(2) of CGST Act satisfied.