Accounts Entry for Online

Dear ,

This is rekated to account entry for a transaction done in online purchase ( Myntra,item for personal use) and for which Proprietary Firm GSTIN no is used for ITC claim for following case

1) By family member through credit card or other way

2 ) Using proprietary personal 

Also suggest otherway around if its not allowed. Can we show on cash transactions 

Replies (5)
Quick Summary
This discussion explores the correct accounting entries for online purchases made using a proprietary firm's GSTIN, particularly when the items are for personal use or gifted to employees. It clarifies that Input Tax Credit (ITC) cannot be claimed for personal purchases. The advice suggests recording such transactions as cash payments or crediting the person who made the payment, with the firm later settling the amount.

ITC is blocked for the purchases used for personal use. Yes, you can pay cash.

Thanks for your response.

Can it be shown for employee benefit ( i.e shopping done from amazon for gifting to employee). If yes , as i have purchased through family member credit card, shall i show in account book it as cash purchase?

ITC may not be claimed if the purchases are not in course of furtherance of business.

Thanks.

if its being used for business need . How to show accounts entry as payment was done by other person card and bill was prepared in the name of firm. Shall it be shown as cash entry?

It can be shown as paid by the creditor, finally his account can be settled with cash/bank.

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