Reverse mechanism

[mk Jain]

Dear Sir,

Please reply my querry for service tax payable under reverse charge.

If I ahave received the bill of GTA service in july for june month service and date of invoice also mentioned in June17

then under reverse charge mechanism what is the liability, As per me liability is as per service tax rate ( 14+0.5+0.5) after 70% abatement. But how can we pay in new tax regime.

Rgds,

MJ

AI Summary

Reverse charge liability: tax arises when supply and invoice occur, and GST removes prior abatement allowing full tax payment.
Reverse charge liability for GTA services arises when the service is provided and invoiced in a prior tax period, obligating the taxpayer to discharge service tax for that period even if payment is received later; under the GST regime, no abatement applies and the full applicable tax is payable where reverse charge applies.