Blocked Credit Unblocked

In Order No. 27/WBAAR/2025-26 dated 16 January 2026, the West Bengal Authority for Advance Ruling in the case of Citius Holidays Private Limited clarified that Input Tax Credit on food and beverage services is admissible when such supplies form part of a taxable composite supply of event management services. Reading Sections 16, 17(5), 2(30) and 8 of the CGST Act harmoniously, the Authority held that the bar under Section 17(5) is lifted by its proviso in such cases, and that separate hotel invoices are not mandatory for availing ITC.