As per the GST law, services by an employee to the employer in the course of or in relation to his employment, as well as gifts not exceeding Rs 50,000/- in value in the financial year by an employer to an employee will neither constitute a 'supply of goods' nor 'supply of services'.
If an employee incurs expenses towards accommodation or food during an official trip, and the company reimburses the same including the tax reflected in the bill / invoice, would such company be entitled to ITC in respect of the tax amount so reimbursed?
editorpick:
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No,
ITC would not be available to the company who reimburses to the employees. In order to claim ITC the company must posesses documents like bill, tax invoices etc. here in this case it would be in the name of the employees only.. further supplier has to give credit of tax to the recipient vide GST Reg.No.of recepient in the return then only recipient can claim ITC. here in this case it will be in the individual names of employees without GST no. Hence in my opinion the company wont be able to claim ITC of reimbursements.
the employee can take all the bills in company's name and since it is for company's work its legitimate also.
If my company is registered in Chandigarh and I spend for stay in a hotel in Delhi for official work than hotel will charge Delhi CGST & SGST on that transaction, as I am registered in Chandigarh I cannot book input of Delhi CGST & SGST in Chandigarh but if I was also registered under GST, in Delhi than I can book credit on that transaction
Yes in that case u can
My queery is : we are regd in delhi and my employees goes to chennai and bangalore for sales tour , they hire hotel in those states and hotel charge CGST Plus SGST . what will be the scenario in that case
My view, we will not be able to claim the ITC
Please correct me , if i am wrong
regards
GAWESH NARULA