In Pvt ltd Company we have debit the Director Travelling Exps in Profit & loss A/c. Director Travelling expenses include domestics & international. The company have a GSTIN. The Credit card in the name of Director not in the name of Company. The Director book flight tickets through yatra.com and not mention the GST no. of Company at the time of Booking & make the online payments. After15 days we received the Credit Card bill & make the payment from Company to Credit Card Company. The credit Card bill for only Travelling Exps. In the GST Return (GSTR-3B)-July to November-2017, we have not given in any details in GST Return. Now we want to do quarterly Return of GSTR-1 for period July To September-2017. Should I give some information about the expenses of Travelling in GSTR-1? Telephone Exps.--Can we take the Credit of SGST & CGST in GSTR-1&3B return. MTNL Telephone Bill on the Name of Company.
In Pvt ltd Company we have debit the Director Travelling Exps in Profit & loss A/c. Director Travelling expenses include domestics & international. The company have a GSTIN. The Credit card in the name of Director not in the name of Company. The Director book flight tickets through yatra.com and not mention the GST no. of Company at the time of Booking & make the online payments. After15 days we received the Credit Card bill & make the payment from Company to Credit Card Company. The credit Card bill for only Travelling Exps. In the GST Return (GSTR-3B)-July to November-2017, we have not given in any details in GST Return. Now we want to do quarterly Return of GSTR-1 for period July To September-2017. Should I give some information about the expenses of Travelling in GSTR-1? Telephone Exps.--Can we take the Credit of SGST & CGST in GSTR-1&3B return. MTNL Telephone Bill on the Name of Company. Please advise in above matter as earliest. Thanks & regards
07 July 2024
Based on the details provided, here are the clarifications and recommendations regarding GST treatment of expenses:
1. **Director's Travel Expenses:** - Since the director's credit card was used to book flights and other travel expenses, and the GSTIN of the company was not mentioned at the time of booking, input tax credit (ITC) cannot be claimed on these expenses. According to GST rules, for ITC to be claimed, the GSTIN of the company must be mentioned during the transaction.
2. **Reporting in GSTR-1:** - GSTR-1 is used to report outward supplies (sales) made by the company. Expenses such as director's travel expenses should not be reported in GSTR-1 because these are not outward supplies. GSTR-1 primarily includes details of sales invoices issued to customers.
3. **GSTR-3B and ITC:** - For expenses like MTNL telephone bills that are in the name of the company and used for business purposes, you can claim input tax credit (ITC) of CGST (Central GST) and SGST (State GST) in your GSTR-3B return, provided all conditions for claiming ITC are met.
4. **Quarterly Returns (GSTR-1 for July to September 2017):** - Director's travel expenses should not be included in GSTR-1. Only sales transactions made to customers should be reported in GSTR-1.
**Telephone Expenses:** - If the MTNL telephone bill is in the name of the company and used for business purposes, you can claim the GST paid (SGST and CGST) as input tax credit in both GSTR-1 (if applicable) and GSTR-3B returns.
**Credit Card Payments:** - Payments made from the company to the director's credit card company for travel expenses are treated as reimbursements. These reimbursements do not attract GST as they are not supply of goods or services.
In summary: - Ensure that only business-related expenses where GST was paid with the company's GSTIN mentioned are claimed for input tax credit. - Director's travel expenses where GST was not claimed cannot be included in GSTR-1. - MTNL telephone expenses (where GST was paid and bill is in the name of the company) can be claimed for ITC in GSTR-3B.
For accurate and compliant GST filing, it's recommended to consult with a tax advisor or GST consultant who can provide tailored guidance based on your specific business details and transactions.
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