BALANCE CREDIT ON SERVICE TAX

[SURYAKANT MITHBAVKAR]

While Implemetation of GST, availing balance credit on service tax we have to disclose in last return to carried forwards in GSTN Server.

As per Service tax Act, Credit is eligible after making payment to service provider.

can we issue only cheque in name of service provider (Not present in their Bank which will done in next month i.e. July-17) and avail service tax credit .

[KumaraswamyReddy Alluganti]

Yes, You can do so since as per S.140(9) if the person eligible for input credit under payment basis can be able to take credit in electronic credit ledger under GST if the payment is made with in 3 months from the appointed date.

AI Summary

Input tax credit on service tax allowed if payment is made within prescribed period and carried into GST ledger. Transitional rules permit persons eligible for input credit on a payment basis to transfer service tax credit into the GST electronic credit ledger provided the payment to the service provider is made within the prescribed transitional period from the appointed date; issuing a cheque before bank realization is accepted so long as the payment occurs within that period.