Transitional provision

[yateen vyas]

Sir,

1. I have booked a item of raw material on 28 june and it will received on 3 july,i have to pay service tax on GTA on reverse charge so either i ahve to pay on old law or in new law.

2. If i book payment and pay in existing law there is any problem.

[Rajagopalan Ranganathan]

Sir

If the payment is made on or before, say, 30.6.2017 it will be under existing law. If the same is paid on or after. say, 1.7.2017, then it is to be paid under GST law because if GST law is brought into force on 1.7.2017 the existing law will automatically get repealed vide Section 174 (1) of CGST Act, 2017 which states that " Save as otherwise provided in this Act, on and from the date of commencement of this Act, the Central Excise Act, 1944 (1 of 1944.) (except as respects goods included in entry 84 of the Union List of the Seventh Schedule to the Constitution), the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, (16 of 1955.) the Additional Duties of Excise (Goods of Special Importance) Act, 1957, (58 of 1957.) the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978, (40 of 1978.) and the Central Excise Tariff Act, 1985 (5 of 1986.) (hereafter referred to as the repealed Acts) are hereby repealed. "

[yateen vyas]

Sir,

if im not wrong it is section 142 (3) of cgst act.

[yateen vyas]

In this case if invoice is also issued before GST and payment is also made before GST so in that case which tax will be payble either ST or GST on GTA services.

AI Summary

GST applicability hinges on payment date; pre commencement payments follow prior law, post commencement payments attract GST. GST applicability for GTA services is governed by the timing of payment relative to GST commencement: payments made before commencement fall under the existing service tax regime; payments made on or after commencement fall under GST because prior enactments are repealed on commencement under Section 174(1) of the CGST Act. A related query asks whether invoice issuance and payment both made before commencement affect which tax (service tax or GST) applies when goods are received after commencement.