Question1:

We have booked an income of Rs 50 lakhs on provisional basis as on 31st March, 2017 on which service tax @15% amounting Rs 7.5 Lakhs has been paid in the month of November, 2017. Now we have to raise an Invoice for the aforesaid income to the Party. Please kindly advise how to charge the service tax amount in the invoice to be raised now.

Answer: 

Under the GST regime, GST is required to be paid according to the time of supply prescribed under Section 13 of CGST Act, 2017. According to sub-section (2) of the said Section, time of supply shall be the earliest of the dated mentioned below;  

(a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or 

(b) the date of provision of service, if the invoice is not issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or 

(c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply.   After the implementation of GST regime, all transactions are to be determined under the said Act and not under earlier tax regime. Service tax already deposited by you may be claimed as refund by you as the same is no longer required to be paid.   According to your question, supply of service has not yet been made, hence, applicability of payment of tax cannot be determined. You are requested to give detail of dates of transaction made to answer your question. (Reply dt. 04/12/2017)