PA/Accounts-II/GST-Punjab/2024-25 (Part)/232-277
Government of India
Ministry of Communications
Department of Posts
(Postal Accounts Wing)
Dak Bhawan, Sansad Marg,
New Delhi-110 001.
Dated 10/12/2025
To,
All Head of the Circles
All Head of the PAOs
Sub.: Clarification regarding 'availing Input Tax Credit' on Hotel Stays during Official Tours -reg.
This is regarding the eligibility of Input Tax Credit (ITC) on CGST/SGST paid on hotel accommodation charges during official tours.
2. In this regard, it is clarified that ITC on CGST/SGST charged on hotel bills is admissible only when both the supplier (hotel) and the recipient (Department/Office) are registered under GST in the same State. When an officer/official travels to another state and stays in a hotel located there, ITC cannot be claimed on the CGST and SGST charged by the hotel since it is not in the same state as the recipient's GST registration. Cross-state CGST/SGST is not creditable. However, if the stay is in the same state, then ITC can be claimed.
3. After implementation of the "One State One GSTIN" policy and Taxation Module in IT 2.0, across PAN India, it will be crucial to provide the correct state-specific GSTIN at the time of hotel booking. The GSTIN corresponding to the state in which the official/officer is travelling should be furnished. This practice will ensure that ITC on hotel expenses is fully claimable, thereby improving tax efficiency and reducing overall costs to the Department.
4. This issues with the approval of the Competent Authority.
(Saurabh M. Deshmukh)
Director (Accounts)
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