Presently, service providers having turnover below ₹ 50 lacs, are allowed to pay service tax on Receipt basis. This provision is not existing in the proposed GST Act.
However, what would be the position for invoices raised as per present provisions and for which the payments are received after implementation of GST. Whether service tax should be paid or GST ?? If service tax is to be paid, how to disclose the same in return ??
Handling Pre-GST Invoices: Service Tax vs. GST for Providers with Turnover Under 50 Lakhs Explained A query was raised regarding the transitional provisions under the proposed Goods and Services Tax (GST) Act, specifically concerning service providers with a turnover below 50 lakhs who currently pay service tax on a receipt basis. The issue focused on how to handle invoices raised before the GST implementation but paid afterward, questioning whether service tax or GST should apply and how to disclose this in returns. The response indicated that such cases would be treated under the normal provisions, implying standard procedures should be followed. (AI Summary)
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