ITC on Food and Beverages Allowed for Event Services | AAR

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ITC on food and beverages

Case Details: Citius Holidays (P.) Ltd., In re [2026] 182 taxmann.com 675 (AAR-WEST BENGAL)

Judiciary and Counsel Details

  • Shafeeq S. & Jaydip Kumar Chakrabarti, Member
  • Vikas B. Waghmare, CA & Keyur Thakkar, AR for the Applicant.

Facts of the Case

The applicant, engaged in event management, tours and travel services, arranged bundled services for clients, including hotel accommodation, conference rooms, and meals, for which a consolidated fee was charged. Hotels issued single or bundled invoices covering accommodation, venue facilities, and food and beverages used for providing such services. An application for advance ruling was filed seeking clarity on the admissibility of Input Tax Credit on food and beverages used in supplying event management services. The matter was accordingly placed before the Authority for Advance Ruling (AAR).

AAR Held

The AAR held that the services supplied qualified as a composite supply with event management as the principal supply and hotel accommodation, conference facilities, and food and beverages as ancillary supplies. It recorded that food and beverages were supplied as part of the bundled service provided to clients. It ruled that where such inward supplies form part of a taxable composite supply, restriction on Input Tax Credit would not apply. Accordingly, Input Tax Credit on food and beverages used in providing event management services was held to be admissible, subject to the fulfilment of general conditions under the CGST Act and the West Bengal GST Act.

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied