Refund of service tax and issue of invoice with gst terms

[SreejithMadampath m]

Dear Sir,

We have raised invoice and given to customer in december 2016, but due to few disputes,customer did not paid the amount that time and but we already paid to service tax to government. Now customer is ready to pay,but they are asking for new invoice with gst terms.

If we cancel the old invoice,whether government will refund our service tax? and if yes,what is the procedure for the same.

[KASTURI SETHI]

Practically chances are dim.

[SreejithMadampath m]

Please clarify sir

[KASTURI SETHI]

Avoid this move. It is in your Interest. Such step is not required. Do not adopt zigzag path.

path.

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir.

[DR.MARIAPPAN GOVINDARAJAN]

If it is in the service tax regime you may cancel the earlier bill and adjust the said amount in the present payment.

You may issue revised bill in GST as requested by the customer.

You may get the refund of service tax earlier you paid to the department with details and documentary evidence but as said by Shri Sethi, the chances are dim.

[Himansu Sekhar]

No , refund is allowable. The point of taxation is the completion of service. Since the service is completed before the appointed dates, service tax has been rightly paid by you.

AI Summary

Point of taxation: refund unlikely where services completed before GST; consider cancelling or adjusting invoice and issuing revised GST invoice.
Where a service tax era invoice was issued and service tax paid before GST, refund claims for the paid service tax are technically possible but practically unlikely; the point of taxation may vest liability before GST, while pragmatic alternatives include cancelling or adjusting the earlier bill, issuing a revised GST invoice, and preserving documentary evidence when pursuing any refund.