Input credit of Service Tax under RMC for June, 2017 paid in July, 2017

[SUSHILKUMAR GOYAL]

Under GST, how can we claim input credit of service tax RCM for the month of June, 2017 paid in July, 2017, as it will not be carried forward as per Service Tax return filed for the period ended on 30th June, 2017.

[Rajagopalan Ranganathan]

Sir,

You have to file ST-3 return for the period April 2017 to June 2017 on or before 15.8.2017. Therefore there is reason for not including the service tax paid in July 2017 in the ST-3 return for the period April 2017 to June 2017.

AI Summary

Input credit of service tax under reverse charge cannot be claimed in a prior return if payment occurred after return filing.
Claiming input credit of service tax paid under the reverse charge mechanism is governed by the timing of payment and return filing. If the ST-3 return for April-June was required to be filed by the due date, a service tax payment made in July cannot be included in that April-June ST-3 return and must be accounted for in the period corresponding to the actual payment or via permitted amendment procedures.