Pre GST period Credit note adjustment in Post GST

[Indian Commerce]

Dear Sir,

We had raised a tax Invoice on 12th June 2017 to one our client for the Works Contract services completed during the Pre-GST regime with Service Tax and VAT.

However, our client has given their approval in the month of November 2017 by reducing the Invoice value along with taxes.We now need to issue a Credit note to our client for the reduced portion and to adjust the excess paid Taxes in the current GST regime.

Since the last date of filing ST-3 return (including revised returns) period was already exhausted, we are unable to show this excess paid tax as credit through Tran-1 form.

As per Tran-1 form, CENVAT Credits carried forward in the last returns are only allowed. Since, we are unable to show this excess paid tax figures in our last ST-3 returns due to the delay in certification of Tax Invoice by our client, how do we get these excess paid Service tax & Cess as credit now, for adjusting in the Post GST regime. Please clarify.

Regards

S.Shanmugam

[YAGAY andSUN]

You may file a writ petition in this regard since even constitution of India does not allow unjust enrichment. You may also file an application for refund against the excess paid Service Tax.

AI Summary

CENVAT credit carryforward limited to declared pre transition returns; seek refund or invoke unjust enrichment remedies. Tran 1-style transitional credit allows only CENVAT or credit balances that were carried forward in the final pre GST returns; amounts not shown in those returns because the recipient certified a reduced invoice after the return period cannot be admitted as transitional credit. Where such excess Service Tax and Cess cannot be adjusted via the transitional form, available remedies include filing for a refund of the excess pre GST tax or pursuing writ remedies invoking the principle against unjust enrichment to recover the excess paid.