How to claim input tax credit for your business travel?


GST is one of the biggest tax reforms which changed the way we Indians, carry out business. GST acronym for Goods And Service Tax was launched with the primary intention to reduce all the indirect taxes into one single tax structure.

But then the sudden introduction of a new tax structure has left most of us bewildered. This can be attributed to the fact of our lack of knowledge but in reality, GST has made life a lot simpler and reduced the number of complicated tax calculations. The best part about GST is, it has helped all the corporate people to save their business expenses through the process of claiming their input credits.

What is Input tax credit?

In simple words, input tax credit will help you to reduce the tax you are paying on sales, from the tax you have already paid on the purchase.

For example, if you are a corporate :

The tax you pay for the sales of good is Rs 500

The tax you have already paid when you made a travel is Rs 400

So, You can claim input credit of Rs 400 and pay only Rs 100 in taxes.

Impact of GST on Business Travel

Business travel forms an integral part for any organization. In most companies, it is one of the highest spending sectors. Corporates can control these expenses and claim input tax credit through GST compliant invoices.

Economy class air travel will become cheaper whereas business class will become dearer. Similarly, non AC travel in trains will not be affected while ticket prices for AC trains will go up marginally.

Economy class: 5 %

Business class: 12 %

Non AC train tickets: Tax free

AC train tickets: 5 %

What do you require to claim input tax credit?

People traveling for business purposes are now requested to submit GST compliant invoices to avail input tax credit benefits under the goods and services (GST) regime. Make sure your business travel solution provider is GST ready so that you do not lose out on the benefits. It is essential you have GST compliant invoice from both the airline and your travel solution provider to claim the input tax credit.

Let’s have a look how your travel solution provider can help you to claim input tax credit :

Consider ABC corporate needs to claim input tax credit and AtYourPrice is its business travel solution provider. ABC corporate need to provide AtYourPrice with its GST identification number. AtYourPrice helps ABC corporate to obtain the GST compliant invoice from respective airline service provider. Also, it issues invoices for travel bookings according to GST compliance with the following information mentioned on it.

ABC corporate’s Registered GST number

ABC corporate’s Registered contact number

ABC corporate’s Registered GST Billing Address

ABC corporate’s Registered E-Mail Address

AtYourPrice’s GST number

Whenever any employee, books air ticket AtYourPrice auto captures all the details of ABC corporate and provides a GST compliant invoice for each booking. Hence by having GST compliant invoices from travel vendors, corporates can upload their bills into the government website which will help them in claiming the input credits on business travel expenses.

If you are a corporate and looking to claim your Input Tax Credit with GST compliant invoices, AtYourPrice is the perfect fit for you. AtYourPrice is a robust web-based business travel solution that automates travel planning, requisition, approval, fulfillment, invoicing, reporting and duty of care. Today AtYourPrice is a travel solution choice for more than 250 corporates in India.

Click on the video link, to know more about how you can claim the input tax credit for your business travel.

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