A division bench of the Delhi High Court, recently asked the central Government to consider the anomalies in availment of input tax credit by Tour operators in respect of State Goods and Services Tax (SGST) paid by them.
The petitioner, D. Pauls Travel & Tours Ltd is engaged in the business of booking tours and hotel packages for customers.
According to them, 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 concerned State.
They submitted that according to the department, Tour operators have to be registered in all States and Union Territories to avail input credit of SGST. This is contrary to the purpose and objective of Goods and Services Tax, the petitioners said.
It was further argued that different provisions are applicable in case of online bookings through web travel portals and they are able to avail the credit.
Admitting the petition on the files, Justices Sanjiv Khanna and Prathiba M Singh directed the Central Government to examine the issues.
“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.”
The bench relisted the matter on 8th February.
Subscribe Taxscan Premium to view the Judgment
