ITC on Food and Beverages Allowed for Event Services

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.