CA NeWs Beta*: Persons Registered in a particular State can't claim credit of GST paid on hotel services availed in other State: AAAR

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Friday, January 17, 2020

Persons Registered in a particular State can't claim credit of GST paid on hotel services availed in other State: AAAR

Persons Registered in a particular State can't claim credit of GST paid on hotel services availed in other State: AAAR

[IMF Cognitive Technology (P.) Ltd., In re [2019] 108 taxmann.com 412 (AAAR-Rajasthan)]

The applicant is engaged in development, designing and trading of all types of computer software. It procures hotel services in the Haryana State on which hotel collects Central GST and State GST of
Haryana. It is registered under GST in the State of Rajasthan. It has filed an application for Advance Ruling to determine the availability of input tax credit of GST paid in Haryana.

The Authority for Advance Ruling, Rajasthan held that the ITC of GST paid in Haryana State shall not be available to the applicant registered in Rajasthan State. The applicant filed an appeal before Appellate Authority for Advance Ruling, Rajasthan.

The Appellate Authority observed that Central GST is levied on all intra-State supplies where the location of supplier and place of supply are in the same State. For person registered in Rajasthan, ITC of Central GST would be available to him, if the location of supplier and place of supply of services are in the same State, i.e., Rajasthan. ITC of Central GST charged from the applicant in Haryana is not available as in this case as both location of supplier and place of supply of services are in Haryana. The Appellate Authority upheld the order of AAR that ITC of GST paid in Haryana State is not admissible to the applicant registered in Rajasthan State.

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