RCM payment for manpower

[srivarihitechindustries ltd]

Sir,

We have paid Service tax under RCM for manpower services for June 2017 is paid on 06.7.2017, our consultant told not to take input credit in ER1 for June 2017. Then any other provision is available for taking input credit..

Sathish.

[DR.MARIAPPAN GOVINDARAJAN]

The same may be carried forwarded to GST regime. It is my view.

[MUKUND THAKKAR]

Take input credit in ER-1 if not filed.. what ever closing balance is available in last returns will be carried forward In GST.

[Rajagopalan Ranganathan]

Sir,

E.R. 1 return for June 2017 is to b filed on or before 10.7.2017 you can include the service tax paid in RCM in the credit availed column of E.R. 1 and you can get it transferred to your electronic credit ledger under GST.

[Ganeshan Kalyani]

The unclaimed credit can also be transferred to GST by filing GST TRAN-1. The same can be filed within 90 days from the appointed date.

[srivarihitechindustries ltd]

Respected Ganeshan kalyani sir,

Where we have to mention the unclaimed credit in GST TRANS 1...ie., (unclaimed manpower supply service tax under RCM for june 2017) please reply.. or there is any provision for getting refund from the service tax dept.

Sathish.

AI Summary

Input tax credit for reverse-charge manpower services can be claimed and carried forward into the GST regime. Service tax paid under the Reverse Charge Mechanism for manpower services may be treated as credit and migrated into GST either by declaring the credit in the ER-1 return for the relevant period so it forms part of the closing balance to be carried forward into the electronic credit ledger, or by transferring unclaimed credit using the TRAN-1 migration form within the prescribed window; an alternative of seeking a refund from the service tax department was queried but not developed.