2017 Taxo.online 62
W.P.(C) 7320/2017 dated 06.12.2017
D. PAULS TRAVEL & TOURS LTD.
UNION OF INDIA & ANR.
Central Goods & Services Tax Act, 2017
Sanjiv Khanna, Justice & Prathiba M. Singh, Justice
Claim of ITC – GST paid to Hotel – Petitioner in to the business of booking tours and hotel packages for customers, charged IGST from customers for bookings – However, unable to avail input tax credit of SGST charged by the hotels located outside Delhi being not registered in the State in question – Respondents contending that the assesses would have to be registered in all States and Union Territories to avail input credit of SGST – Held: – Respondents directed to examine the assertions and so called anomalies, and also to inform treatment accorded to sale of manufactured goods and other services which are provided by an assessee across the country – Matter to be re-listed.
Represented by: –
Petitioner: – Mr. Anup J. Bhambhani, Senior Advocate with Mr. Rajat Arora, Mr. Gurcharan Singh & Ms. Vishalakshi Singh, Advocates.
Respondent: – Mr. Sanjeev Narula, Senior Standing Counsel with Mr. Abhishek Ghai, Advocate for Customs.
The petitioner submits that it is in the business of booking tours and hotel packages for customers. They charge IGST from customers for bookings in hotels located outside Delhi. However, they are unable to avail input tax credit on the SGST charged by the hotels located outside Delhi. They are not given input tax credit on the SGST paid if they are not registered in the State in question.
The matter requires in depth examination by the respondents for there are several examples, as cited by the petitioners, which show anomalies that arise.
The petitioner submits that as per the stand of the respondents, the petitioner and other assessees would have to be registered in all States and Union Territories to avail input credit of SGST. This, it is submitted, is contrary to the purpose and objective of Goods and Services Tax.
It is submitted by the petitioner that effective rate of service tax would go up from 18% to 27% for hotel rooms in the Rs.2,500/- to Rs.7,500/- per night slab and from 28% to 42% for hotel rooms Rs.7,500/- and above per night.
It is pointed that different provisions are applicable in case of online bookings through web travel portals and they are able to avail the credit.
The respondents will examine the assertions and so called anomalies. We will be informed on the treatment accorded on sale of manufactured goods and other services which are provided by an assessee across the country.
The respondents would examine and consider whether the matter should be placed before the GST Council. Relist on 8th February, 2018.