Whether ITC Available on Employee Travel Expenses and Hotel Bill

Last updated at April 16, 2024 by

When an employee travels out of city, it is either
Business Travel
or
Leave Travel
 
As per blocked credit list, ITC not available of  Leave Travel but can be availed for Business Travel

 

ITC on Travel.jpg

Now when an employee travels, he incur expenses on Hotel, Air Tickets, Food etc. 
In this case, no ITC of food as per blocked credit list
But ITC can be claimed of hotel and air tickets
 
Note
Sometimes, there is problem in claiming ITC due to GST no of diff states

Example

Mr Harpreet Singh was working as a Sales executive in Rocket Sales Corporation,Delhi

He went on a business tour to Chennai and stayed at Taj,Mumbai

Taj Mumbai duly gave GST Bill in name of Rocket Sales charging 10000 +600 cgst+600 SGST

Rocket Sales is not registered only in delhi,not in Mumbai

Can it claim input of this CGST SGST

View Answer
 

ITC on Hotel Bill.jpg

Transcript

ITC ON TRAVEL LEAVE TRAVEL OFFICIAL TRAVEL No ITC ITC Available on Hotel Airfare However, no ITC on Food HOTEL BILL ROOM CHARGES FOOD If same state ITC Available No ITC on Food If different state No ITC if we don’t have registration of that state teachoo.com

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.