Fate of services tax paid on advance received from customer under GST
Query (Issue) Started By: – Prakash Gupta Dated:- 22-12-2017 Last Reply Date:- 26-12-2017 Goods and Services Tax – GST
Got 7 Replies
GST
Dear Expert,
\nNeed your help on below mentioned issued under GST. Brief facts and query is as under:
\nThe company is in business of project construction since year 2015. It has received mobilization advance of Rs. say 10 Crore in January 2017 ( before GST regime) and on which it paid service tax as per the applicable rate.
\nNow under GST regime the company will raise invoice and willing to set off its GST liability with earlier service tax, which has been paid advance received.
\nWith the above mentioned background, my query<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n her words, there will be no loss of the amount of ST already deposited. Other experts may also pl. Intervene. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n aid against the whole contract work. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Fate of services tax paid on advance received from customer under GST Query (Issue) Started By: – Prakash Gupta Dated:- 22-12-2017 Last Reply Date:- 26-12-2017 Goods and Services Tax – GSTGot 7 RepliesGSTDear Expert, Need your help on below mentioned issued under GST. Brief facts and query is as under: The company is in business … Continue reading “Fate of services tax paid on advance received from customer under GST”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-9574","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9574","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=9574"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9574\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\nReply By Prakash Gupta:
\nThe Reply:
\nThank You Sir,
\nFor your reply.
\nReply By Vamsi Krishna:
\nThe Reply:
\nAgree with Kasthuri sir,
\nWould like to add further if the contract is a EPC contract where you would just have paid Mobilisation advance along with Service tax on that.
\nAnd if the actual services are started and billing started in GST regime, your contractor has to file Tran-1 under section 142(11)(c) claiming the ST paid to the dept and should return back the same to you.
\nSince original supply (services) taken place in GST regime, he will raise GST bills and you will get full credit of same.
\nPls make sure that your contrac<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nAs i mentioned it is applicable to big projects (EPC\/Turnkey) where contractor will be paid 10% of the total work as Advance for site mobilisation and adjusts the advance each Running Bills (RA Bills) which will be normally for 3-4 years.
\nReply By KASTURI SETHI:
\nThe Reply:
\nO.K. Sir. But here fate is to be decided by the POTRs as per latest FAQs.
\nReply By Prakash Gupta:
\nThe Reply:
\nDear Experts,
\nThanks for your response. Mentioning herewith a link, containing an article and discussion of this forum. Need your comment on below queries :
\n1. Can we treat mobilization advance under section 142(11)(b) of the CGST Act or It is need to show u\/s 142(11)(C) only, as it is construction service, even we have n<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n