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Input Tax Credit is not admissible in respect of GST paid for hotel stay in case of rent free hotel accommodation provided to General Manager and Managing Director of the company

Shanti Prime Publication Pvt. Ltd.

Input Tax Credit — the applicant, seeking an advance ruling in respect of the following ISSUE..

1) Whether Input Tax Credit is admissible in respect of GST paid for hotel stay in case of rent free hotel accommodation provided to General Manager and Managing Director of the Applicant?

2) Whether invoice for quality claim raised by the Applicant on POSCO Daewoo Corporation located in Korea will be treated as “export of service” ?

3) Whether recovery of Parents Health Insurance expenses from employee in respect of the insurance provided by the Applicant amounts to “supply of service” under Section 7 of the Central Goods and Service Tax Act, 2017?

4) If the said recovery amounts to “supply”, what will be the time of supply and value of the said supply?

Whether the Applicant can claim input tax credit of GST charged by the insurance company?

Held that—
Input Tax Credit is not admissible in respect of GST paid for hotel stay in case of rent free hotel accommodation provided to General Manager and Managing Director of the company.

The recovery of Parents Health Insurance expenses from employee does not amount to “supply of service” under the GST Laws. Since there is no supply of services there is no question of time and value of the supply. The applicant cannot claim ITC of GST charged by the insurance company.Posco India Pune Processing Center Private Limited, In re.. [2018] 4 TAXLOK.COM 123 (AAR-Maharashtra)