Partner's Credit Card - GST issue

[Jatinder Kumar]

Dear Sir,

We have purchased goods / services through Credit Card (in the name of Partner) and credit card charges like interest charges, finance charges, etc. debited in firm Profit and Loss A/c.

We also debited GST on credit card interest charges in firm Profit & Loss A/c.

Please guide me, how to reflect interest charges, finance charges, GST paid on such charges in GST Return.

ITC not claimed by us due to credit card in the name of Partner.

Telephone Bills are also in the name of partner's therefore ITC not claimed, where it is shown in return

Thanks & Regards,

Jatinder Kumar

[Rajagopalan Ranganathan]

Sir,

According to Section 25 of the Partnership Act, 1932 "Every partner is liable jointly with all the other partners and also severally, for all acts of the firm done while he is a partner." Therefore if the goods purchased through credit card of a partner then it will be treated as purchase made by the firm. Therefore you can take ITC.

Interest charges, finance charges, GST paid on such charges are to be shown in GST return by the service provider. You are service receiver.

In respect of Telephone bills also you can claim ITC since partner and partnership firm are not different legal persons.

[Jatinder Kumar]

Thank you very much sir, please not credit card in the name of partner how can i take ITC due to, firm GSTIN not mention on credit card statement.

[Himansu Sekhar]

For taking ITC, the gstn of the business entity will have to be mentioned. Otherwise it will not pass through the matching process. ITC is not allowable.

[Jatinder Kumar]

Thanks sir

[Chhatra Jain]

In both cases of credit card & telephone how firm's GST will be updated. Income Tax & GST has separate treatment. Though both expenses are for furtherance of business but in case of GST till GSTIN is there on the invoice it is of no use. So in both cases ITC is not available to you.

AI Summary

Input tax credit eligibility: partner made purchases require the firm's GSTIN on invoices for ITC to be claimable. Transactions made through a partner's credit card and related GST on interest or service charges are attributable to the firm under partnership principles, making the firm the service recipient; however, ITC is conditional on documentary compliance and statutory matching, specifically the presence of the firm's GSTIN on the invoice and successful matching in returns, and will not be available where those requirements are not met.