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Demystifying GST on Business Travel

MakeMyTrip Blog

Last updated: May 10, 2023

Do your employees travel frequently on business? Are you saving money by claiming Input Tax Credit on their business travel? While most of us are aware of GST, we miss out on the savings that we can avail when paying taxes, in the form of ITC.

Let us learn more about this crucial component.

What is Input Tax Credit?

Thereafter, once your product/service is ready, suppose, you have to pay INR 500 as tax on sales. Here, you can claim input credit of INR 400 (paid during business travel) and only pay remaining INR 100 as tax.

Read More: Save Big on Your Company’s Business Travel with MakeMyTrip’s myBiz

GST on Flights & Hotels

Read More: Make Your Company Travel Smarter with MakeMyTrip’s myBiz

Tax Slabs on Flights & Trains

Tax Slabs on Hotels

Who Can You Claim the GST from?

You can claim the GST from both, your service provider, as well as the supplier:

Steps to Claim Input Tax Credit

The process to follow for claiming ITC is:

  1. Provide your correct details to the travel service provider + supplier. Any error in these details will result in loss of ITC.
  2. Obtain GST invoice from your supplier (hotel/flight). ITC on flights can be availed for any destination. However, for hotels, the company needs to be registered in the same state as the booked hotel.

For e.g., if your company has a Delhi GTIN, and you have booked a hotel in Nagpur, you will not be able to claim ITC. To be able to do so, you need a Maharashtra/pan India GSTIN.

  1. The travel service provider + supplier will upload the respective GST amount on the government website by the 20th of subsequent month. This can be checked by the company on their portal.
  2. This amount gets credited to the company as ITC.

Details Required on Your GST Invoice:

GST Benefits with myBiz

 

Why switch to myBiz?

Because it is a smart corporate travel management platform offering a customizable, real-time self-booking system, which seamlessly integrates into a company’s structure to deliver convenience, transparency, savings, and the power of choice.  

Switch to myBiz today and step into a world of Savings & Privileges!

 

Add savings & convenience to your corporate travel!

 

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