Tax ability in GST

[ketan mehta]

Dear Experts

If registered persons under service tax was paying service tax on receipts basis( turnover is less than 50 lakh) , has migrated in GST & after Jul.,2017 he receives the realisation for which invoice was issued with service tax in pre gst period then how will he discharge his laibility of service tax in aug or say in oct 2017 ( qtly payment of tax under service tax) or what kind of treatment will be given for such transitional invoices. PL advice.

[Himansu Sekhar]

He will pay service tax in Aug.

[Rajagopalan Ranganathan]

Sir,

The Finance Act, 1994 and the rules made thereunder cease to exist form 1.7.2017. If you pay tax on or after 1.7.2017 you have to pay only gst and not service tax.

AI Summary

Cessation of service tax regime means payments after transition date attract only GST, affecting transitional invoices. A registered person receiving realisation after migration to GST for invoices issued under service tax must consider that the service tax statute and rules ceased to operate from the GST commencement date, and payments made on or after that date are to be discharged under GST rather than as service tax.