Question
XYZ (Maharashtra) had arranged a Customer meet in a Hotel in Bangalore towards sales promotion. The Hotel is ready to issue to separate bills viz. one for food and other for stay. The Hotel will be charging IGST in the invoice issued to XYZ in the name of XYZ, Maharashtra. Can XYZ take input tax credit against the bill for hotel stay?
Answer
The Hotel attract CGST and SGST as Place of
supply as per section 12(3) of IGST Act is as follows:
(3) The place of supply of services
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(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
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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.
Thus in view of above CGST and SGST charged for stay in Hotel in Bangalore is
not available in Maharashtra.
You are suggested to please check whether you can get event managed by Event
Management Company. The invoice of event management will be raised with IGST to
you by the aforesaid Company as the place of supply in case of event management
service provided to registered person shall be the location of service recipient
as per section 12(7) of IGST Act. Event Management Company should be located in
the state where hotel is located. This company can get credit of SGST and CGST.
(Reply dt.18/12/2018)