RCM service tax - GTA June 17 bills

[Bhushan Velhal]

Dear All,

RCM Service bills dated prior to June 17,but received in July month kindly comfirm GST applicable on those bills or can we pay Service Tax under RCM ,

Pls. proivde also if any notification.

Regards

Bhushan

[Himansu Sekhar]

As per rule 7 of pot rules, the date of payment in RCM cases is the point of taxation.if payment in July, pot is not in June. Pot is the deemed date of provision of service. As per transition rules, also refer tweet FAQ, gst is payable.

[KASTURI SETHI]

TIME OF SUPPLY IN CASE OF REVERSE CHARGE MECHANISM;

the “ Time of supply” will be

1. Date of receipt of service, or

2. Date, when payment is made, or

3. Date of receipt of invoice from supplier, whichever is earlier

In case when services are performed over period of time against only one payment for all service as a whole, then the time of supply of service will be time of supply, when all services has been provided.

Querist may decide accordingly.

[KASTURI SETHI]

Service completed before 30.6.17. Date of invoice before 30.6.17. Only payment received during July, 17. GST Acts/Rules cannot be made applicable retrospectively. ST is applicable. If the department forces to GST for completion of service before 30.6.17, deposit GST under protest and fight the case/issue legally.

AI Summary

Reverse charge time of supply governs tax liability: earliest of receipt, payment or invoice decides applicability, not retrospective GST. For reverse charge supplies the point of taxation is generally the time of payment, but the time of supply is the earliest of receipt of service, payment, or receipt of invoice. Under transition rules, services completed and invoiced before the GST effective date remain liable to Service Tax, and GST should not be applied retrospectively; disputed demands may be paid under protest and contested legally.