Carry forward of Service tax in GST in ISD Registration and distribution

[JSW CEMENTLIMITED]

We had carried forward closing balance of Service tax from the return filed for the period April 17 to June 17 in tran1 of ISD registration in GST. We are unable to distribute the same while department is verifying the details of credit availed in the GST through Tran1. I received opinions that ISD of service tax credit cannot be distributed in GSTR - 6 returns in GST as there is no provision for Tran1 for ISD registration in Tran-1. Whereas the non-abstante clause of Section 140(7) says that service tax credit received for the services received prior to appointed day can be distributed in GST even if the invoices are received on or after the appointed day. Which gives me an understanding that closing balance of service tax credit from return as well as service tax credit received after 1st July, 2017 is avaialble for distribution as per the provisions of Section 140(7) of CGST Act, 2017.

Can any one guide me as to how to distribute the said credit in GST.?

Regards,

[DR.MARIAPPAN GOVINDARAJAN]

There is no clear picture in this regard.

AI Summary

Service tax credit distribution in GST: uncertainty over ISD carryforward via transitional form and ISD return compliance. Taxpayer carried forward closing service tax credit in Tran 1 under an ISD registration but cannot distribute it via ISD returns because Tran 1 lacks ISD entries and authorities are verifying the transitional filings. The taxpayer invokes the non obstante provision in Section 140(7) to contend that service tax credits for services received prior to the appointed day, even if invoiced after, are distributable in GST; however, departmental practice and procedural mechanism for distribution in GSTR 6 remain unclear.