Payment of tax under gst

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

We are running a tax consultancy firm and registered with the service tax department and discharging the taxes on the receipt basis, because our turnover less than 50 lakhs p.a.

My question is if we receive the payment from the clients, against which we raised the invoices and rendered the services prior to appointed day.

1. How to discharge the service tax liability since this receipt may continue more than 1 year. Whether should we pay existing tax or new gst on the services rendered and invoices raised before appointed day.

2. The final return of service tax is between April2017 and June 2017, then how to declare my receipt transaction under GST regime which relates to existing law.

Kindly clarify me. Thanks in advance.

AI Summary

Payments for Pre-GST Services Invoiced Before Implementation Date Should Be Subject to Service Tax, Not GST A tax consultancy firm inquired about the tax obligations under the GST regime for services rendered and invoiced before the GST implementation date, but for which payment is received afterward. Experts responded that such payments should be subject to Service Tax, not GST, as the services and invoicing occurred before the appointed date. They advised that the Service Tax system remains applicable for payments received post-GST implementation and suggested filing returns for the period of April to June 2017 based on received and paid amounts. The firm operates on a receipt basis due to its turnover being under 50 lakhs annually.