If a hotel provides both food( @ 5% )and accommodation @ rates prescribed by Govt., Is ITC available on all purchases i.e like laundry expenses?
If you are staying in a Hotel, then principal supply is hotel services.
Input credit is available on hotel staying. So if you have a single bill for hotel staying, you are eligible for input credit.
However, if you have separate bills for hotel staying and restaurant then you will be able to take credit only on hotel stay.
Take a single bill from Hotel and you can avail input credit.
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