GST reconciliation for travel has been complex but it is no rocket science. Why ITC for travel? Companies can save up to 5% in corporate travel expenses, for instance, one large conglomerate ended up saving INR 1.12 crores ($ 200k) on a volume of 100,000 trips last fiscal year. T&E is a major cost component in G&A expenses so the impact of savings on the balance sheet is quite sizable. Over the years, we have been helping numerous CFOs and finance teams with ITC and maximizing savings. In the end, we discuss how Zoliday enables one-click reports for reconciliation and smart strategies with GST routing.

1. Zoliday.com
Simplifying Corporate travel
Zoliday GST Reconciliation

2. Content
1. Some basics
• GST and ITC for Hotels
• GST and ITC for Flights/Trains
2. Instant GST Reconciliation
3. Smart GST routing [Paid feature]

3. 1. Some basics

4. Claim ITC to save money
Tax Type GST Rate
GST on Sales of your goods/services
produced by you company
Rs 90,000
GST paid by company for corporate travel
Hotels, Flights, Train
Rs 20,000
Nett tax to be PAID Rs 70,000
• Corporate travel is input for your business
• Claim ITC at the time of paying your taxes from sale of goods/services

5. GST and ITC for Hotels

6. Tax Slabs on Hotels
Declared Room rate GST Rate
Upto ₹ 1000/night Nil
From INR 1001 to INR 7500/night 12%
Above INR 7500/night 18%

7. Always Intra-State [CGST + SGST], Never IGST
SGST+CGST of the hotel’s state (say Maharashtra) is applied on the invoice as:
§ Place of Supply (hotel) and Place of Service (hotel-stay) are in the same state
§ The serving company (the hotel) is a immovable entity*
irrespective of the state from which the employee travelled (say Delhi or Tamil Nadu).
• IGST is never applied
* Section 10,11, 12, 13 of IGST act of 2017, place of supply is where the service was offered in case of immovable entity or events

8. GST Cases
Hotel Registered Hotel Unregistered
Hotel and company
in same state Case 1 Case 3
Hotel and company
in different states
Case 2
Case 4

9. Case 1: Hotel and company registered in same state
Hotel in Mumbai, Maharashtra
Hotel GST registered in Maharashtra
Company in Pune, Maharashtra
Company GST registration in Maharashtra
1. Hotel raises an invoice with an Invoice ID for the hotel-stay
2. The Company pays the invoice raised along with the GST charges
3. Hotel files CGST and SGST with the State Govt of Maharashtra
4. The company claims ITC credit based on the Invoice ID, Hotel’s GST ID, and the paid GST amount
Maharashtra
Government
Room Rate
CGST + SGST
CGST + SGST
ITC

10. Case 2: Hotel and company registered in different state
1. Hotel raises an invoice with an Invoice ID for the hotel-stay
2. The Company pays the invoice raised along with the GST charges
3. Hotel files CGST and SGST with the State Govt of Maharashtra
4. The company can NOT claim ITC
Hotel in Mumbai, Maharashtra
Hotel GST registered in Maharashtra
Company in Bengaluru, Karnataka
Company GST registration in Karnataka
Maharashtra
Government
Room Rate
CGST + SGST
CGST + SGST
NO ITC

11. Case 3: Unregistered hotel and company in same state
1. Hotel raises an invoice with an Invoice ID for the hotel-stay
2. The Company pays the invoice raised along WITHOUT the GST charges
3. The company files GST using Reverse Charge and claims ITC
Hotel in Mumbai, Maharashtra
Hotel NOT registered for GST
Company in Pune, Maharashtra
Company GST registration in Maharashtra
Maharashtra
Government
Room Rate
CGST + SGST
ITC

12. Case 4: Hotel and company registered in different state
1. Hotel raises an invoice with an Invoice ID for the hotel-stay
2. The Company pays the invoice raised along WITHOUT the GST charges
3. The company files GST using Reverse Charge Mechanism but can NOT claim ITC
Hotel in Mumbai, Maharashtra
Hotel GST registered in Maharashtra
Company in Bengaluru, Karnataka
Company GST registration in Karnataka
Maharashtra
Government
Room Rate
NO ITC
CGST + SGST

13. GST and ITC for Flights/Trains

14. Tax Slabs on Flights
Cabin Class GST Rate
Economy Class 5%
Business Class 12%

15. Tax Slabs on Trains
Coach Class GST Rate
Non AC Coach Nil
AC Coach 5%

16. GST for Flights/Trains
• Since Place of Service can be across the states, IGST is
applied
• ITC on flights can be availed for any destination
• Just provide your GST details

17. 2. Zoliday GST Reconciliation

18. Company GST details Required
Add GST Details
Company Zoliday
Details Required on Your GST Invoice:
• Registered Name of the Company
• Registered Address of the Company
• Company GSTIN
• PAN Number

19. Flow for pre-travel invoices
CGST + SGST
Company Employee Zoliday Vendor
Search Book
Pre-generated Invoice via APIInvoice Details via Report
File GST on Govt portal, Get ITC
Government

20. Flow for post-travel invoices
CGST + SGST
Company Employee Zoliday Vendor
Search Book
File GST on Govt portal, Get ITC
Government
Invoice Details via Report
Add invoice details
After travel

21. GST Report

22. GST Reconciliation Report

23. 3. Smart GST routing
[Paid feature*]
*Needs management approval

24. Add multiple GST details
Add GST Details
Company Corporate Office Delhi
Zoliday
Company Sales Office Maharashtra
Add GST Details

25. Flow for pre-travel invoices
CGST + SGST
Company Employee Zoliday Vendor
Search Book
Pre-generated Invoice via APIInvoice Details via Report
File GST on Govt portal, Get ITC
Government
GST of company in same state as vendor provided

26. Smart GST routing
1. Add all your companies to Zoliday Platform
2. Zoliday smartly chooses the company with the same ‘GST State Code’ so that you can avail ITC
3. Add GST and invoice details to government to get instant ITC