POT in GST
By: – CA Akash Phophalia
Goods and Services Tax – GST
Dated:- 9-9-2015<\/p>\n
Introduction
\nPrior to 01.04.2011 service tax was deposited to the credit of Government in the month following the month in which payment was received. In other words service tax was payable on receipt basis. Thereafter, in 2011 in order to achieve a closer fit between the present service tax regime and its predecessor GST regime a need of shift from cash basis to accrual basis was felt and the same was implemented.
\nExisting Provision under Service Tax
\nIn the present law the point of taxation depends upon the three factors viz. date of completion of service, date of payment of service tax and the date of issue of invoice.
\n * General Rule including continuous supply of services
\nSituation
\nPoint of Taxation
\nAdvances received
\nDate of receipt of such advance
\nInvoice issued within stipulated period, and –
\n * No payment is received before issue of invoice
\n\tPayment is received before th<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n en point of taxation shall be the date immediately following the said period of three months. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n n “supply of goods” and “supply of services”. Therefore, the point of taxation in post-GST regime will lie on the basis of supply of goods and supply of services. However, this article is emphasizing the point of taxation on the overlapping transactions to provide harmony in pre-GST and post-GST regime. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" POT in GSTBy: – CA Akash PhophaliaGoods and Services Tax – GSTDated:- 9-9-2015 Introduction Prior to 01.04.2011 service tax was deposited to the credit of Government in the month following the month in which payment was received. In other words service tax was payable on receipt basis. Thereafter, in 2011 in order to achieve a … Continue reading “POT in GST”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-657","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/657","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=657"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/657\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n\tPoint of taxation for Associated Enterprises – In case of associated enterprises where the person providing the service is located outside India, the point of taxation shall be the date of debit in the books of accounts of the service receiver or the date of payment, whichever is earlier.
\n\tSpecial provision for Individuals\/partnership firms\/LLP – Where aggregate value of taxable service provided by the individuals and partnership firms from one or more premises is ₹ 50 lakhs or less in the previous financial year, the service provider has the option to pay service tax on cash basis on the taxable services upto the total of ₹ 50 lakhs in the current financial year
\n\tPoint of taxation in case of change in effective rate of tax –
\nDate of completion of service
\nDate of issue of Invoice
\nDate of Payment
\nPoint of taxation
\nBefore
\nBefore
\nAfter
\nDate of issue of Invoice
\nBefore
\nAft<\/p>\n
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\nOverlapping transactions
\nIt is proposed to consider only two factors for identifying the point of taxation in post-GST regime – Completion of service, and Issue of Invoice. The taxability will be expected to be determined as under (service is taxable in both pre-GST and post-GST regime):-
\nCompletion of Service
\nRaising of Invoice
\nPoint of Taxation
\nPre-GST
\nPre-GST
\nPre-GST
\nPost-GST
\nPre-GST
\nPost-GST
\nPre-GST
\nPost-GST
\nPost-GST
\nIn case the service is not taxable in pre-GST regime and taxable in Post-GST regime or vice-versa, the possible point of taxation event is the completion of provision of service irrespective of the date of issue of invoice or date of payment.
\nIn case of <\/p>\n
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