- Hotel accommodation services priced at Rs 7,500 or less per unit per day are now subject to a mandatory 5% GST rate, with no option to avail Input Tax Credit (ITC).
- Suppliers must reverse ITC on inputs used for such accommodation services, treating these supplies like exempt supplies for ITC purposes.
- Recipients (including businesses) cannot claim ITC on these accommodation invoices, even if booked for business travel or in the company’s name.
- The previous option to charge 18% GST with ITC on lower-priced rooms is no longer available.
- Businesses may need to reconsider vendor selection or travel policies if reclaiming GST is important.
Source: fintua.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "India"
- Continuous Supply of Services Under GST: Legal Criteria Versus Commercial Practice Explained
- Tripura HC: ITC Cannot Be Denied to Bona Fide Purchaser for Supplier’s Tax Default
- Ready-to-Drink Non-Alcoholic Beverages Like Mojito to Attract 40% GST, Rules WB AAR
- Bombay HC: Assignment of Long-Term Industrial Leasehold Rights Not Taxable as ‘Supply’ Under GST
- ITC Not Allowed on Mall Construction for Leasing, Rules Tamil Nadu AAR under GST Law
