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AAR disallows GST credit on executive’s hotel bill

The Maharashtra Authority of Advance Ruling (AAR) held that the company applicant is not eligible to claim input tax credit (ITC) for GST paid on the hotel stay provided to its executive in lieu of rent-free accommodation as it doesn’t amount to furtherance of business. The ruling held that the hotel accommodation was being used by the applicant to provide residential accommodation to its executives for their personal comfort. Further, the AAR also ruled that the company isn’t eligible to claim ITC of GST paid on health insurance provided to employees since there is no supply of services. 


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