Goods and Services Tax – GST – By: – CASANJAY AITHAN – Dated:- 8-7-2017 Last Replied Date:- 19-4-2018 – Existing Taxation v. GST In this article, we would like to explain the concept of section 142(11) of the CGST Act, 2017. This transition provision deals with transactions which have suffered tax (Value Added Tax or Service Tax or Service Tax and VAT). Section 142(11) (a) notwithstanding anything contained in section 12, no tax shall be payable on goods under this Act to the extent the tax was leviable on the said goods under the Value Added Tax Act of the State; (b) notwithstanding anything contained in section 13, no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under Chapter V of the Finance Act, 1994; (c) where tax was paid on any supply both under the Value Added Tax Act and under Chapter V of the Finance Act, 1994, tax shall be leviable under this Act and the taxable person shall be entitled to take credit of value added
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e, 2017 for service to be rendered in July, 2017. The invoice for the service was raised for ₹ 1,50,000/- on 31st July, 2017. Appointed day as 1st July, 2017, GST shall be levied only on ₹ 50,000/-. VAT and Service Tax : In case where VAT and Service Tax, both have been paid in relation to the supply which is to be made after appointed date then a registered person can claim the credit of taxes paid under existing taxation regime in GST regime. It may be noted that GST is to be paid on full value of supply although tax paid under existing taxation can be claimed as credit. In short, person will have to pay differential tax amount to the Government. In case of works contract service, construction services and food and beverage services, etc. VAT and Service Tax, both are levied. In this case if person has paid any tax under existing taxation in respect to the supply to be made after appointed date then person will have to pay full GST under GST regime and such person can cla
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and service tax has been discharged hundred that is 4.5 and where amount received is only 50 rupees and what has been discharge earn 50 rupees.Now for the above what would be the treatment of rupees 50 received in GST regime. – Reply By venkatesh g – The Reply = Agree to the above point. But cases where taxable services rendered before appointed day where service tax has been paid, and vat has not been discharged. How to treat the same.For example, in case of construction service demand raised is rupees 100 and service tax has been discharged on ₹ 100 and amount received is only 40 rupees on which MVAT has been paid under composition. Now for the above, what would be the treatment of rupees 60 received in GST regime. Whether it will be taxable under GST or not? If yes how? – Reply By VAMSI KRISHNA – The Reply = Sir, For example, 'A' is a service provider who received advance for to provide service on 01-06-2017 amounted 10,000 (actual service value is 20,000 as per contr
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service tax leviable. Therefore, in GST, GST is to be paid only on balance 10,000. – Reply By VAMSI KRISHNA – The Reply = Sir thanks for your immediate response, as per 142(11)(b) notwithstanding anything contained in section 13, no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under Chapter V of the Finance Act, 1994; sir, i requested your attention to use of word payable in 142(11)(b), the aforesaid clause given relief from payment of GST as per time of supply, but the section is silent about the levy of charging section on the same. so in my view even through 'A' discharged tax under service tax regime, again GST also levied on said amount but the payment of the same is waived by inserting section 142(11)(b). if my contetion is correct, then guide me how to issue invoice in GST regime, i.e how much taxable value, how much GST and what is the total invoice value ??????? Thanks – Reply By CASanjay Kumawat – The Reply =
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is made after the appointed day, and the Input Tax Credit admissible thereon Further As prescribed in Rule 118 118.Declaration to be made under clause (c) of sub-section (11) of section 142.-Every person to whom the provision of clause (c) of sub-section (11) of section 142 applies, shall within [the period specified in rule 117 or such further period as extended by the Commissioner, submit a declaration electronically in FORM GST TRAN-1 furnishing the proportion of supply on which Value Added Tax or service tax has been paid before a period of ninety days of the appointed day appointed day but the supply is made after the appointed day, and the Input Tax Credit admissible thereon. based on the above my doubt is mentioned below: Service tax Paid on Advances Before 30.06.2017 ₹ 10,00,000/- Proportion of supply made till date is ₹ 2,00,000/- (Rest of the supply will be made after filing of Trans 1 Form) The dealer is liable to Get Credit of ₹ 10,00,000/- or ₹ 2,0
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n advance receipt of 10,000 (agreed to be provided also taxable on receipt basis). and 'A' provided service on 29-07-2017 and issued invoice dated 31-07-2017, as like follows: Taxable value: 20,000 Tax: 1,800 (say tax rate is 18%, 10,000*18/100) Invoice value is 21,800 =============================================== Replied by CASANJAY AITHAN Value of supply – 20000 Taxable value of supply – 10000 GST -1800 Invoice value – 21800 ====================== Urgent Support Required. Sir, as you said earlier, Total value of supply is 20,000 Rs, out of that 10,000 termed as taxable value, what about remaining value of supply in invoice???? how to treat it in invoice???? whether non taxable, exempted or nill rated ??????? How to reflect the same in GSTR-1 & GSTR-3B Can you kindly reply as I am facing the same problem. My company have lot of members and they have paid in advance for 4-5 years in service tax regime. So how I issue invoice in GST regime as we have not issued Invo
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paid on any supply both under the Value Added Tax Act and under Chapter V of the Finance Act, 1994, tax shall be leviable under this Act and the taxable person shall be entitled to take credit of value added tax or service tax paid under the existing law to the extent of supplies made after the appointed day and such credit shall be calculated in such manner as may be prescribed. Accordingly, this section can be divided into 3 parts, are as follows: VAT : When VAT is levied in relation to the supply under VAT then GST will not be levied. Point of taxation for VAT is sale of goods therefore, if sale of goods made as well as invoice raised on or before appointed date then GST will not be levied on the supply to the extent tax was levied under VAT. Service Tax : When Service Tax is levied in relation to the supply then GST will not be levied. Point of taxation for Service Tax is date of invoice(or date of completion of services) or payment, whichever is earlier. Therefore, if invoice is r
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nce recd in ST Regime CAPEXIL is my company name and is a service provider who received advance for five year (2016-17, 2017-18,2018-19, 2019-20, 2020-21) from x member amounting to ₹ 50,000 (Annual fee is ₹ 10000) + Service tax 14 % on April 2016 and on that CAPEXIL paid service tax under service tax regime on advance receipt of 50,000 and Capexil providing services each year starting from first date of financial year. Now how invoice to be issued in GST regime?? Is the below one is correct? Invoice dated 01-04-2018 Taxable value: 10,000 Tax: Nil Invoice value is 10,000 Where to reflect the same in GSTR-1 & GSTR-3B What will be the accounting entry?? 1/4/16 Bank …………. 50000+GST 7500 To Party………….50000+ GST 7500 1/4/16 Party………………….GST 7500 To GST……………………..GST 7500 1/4/17 Party …………………..10000 To Income 17-18………………..10000 1/4/18 Party …………………..10000 To Income 18-19……………
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