Advance Tax paid under ST and dispatches made under GST

[Meenu Agarwal]

We received advance under Service Tax Regime and paid Service tax on same. Supplies were made during GST period . Whether we can adjust amount of service tax paid on advance receipt against invoices issued during 2017-18.

How to show it in GSTR-9

[CSSANJAY MALHOTRA]

Refer to below Misc. Transitional Provision under CGST Act:

Section 142(11)(c) : where tax was paid on any supply both under the Value Added Tax Act and under Chapter V of the Finance Act, 1994, (32 of 1994.) tax shall be leviable under this Act and the taxable person shall be entitled to take credit of value added tax or service tax paid under the existing law to the extent of supplies made after the appointed day and such credit shall be calculated in such manner as may be prescribed.

AI Summary

Transitional credit entitlement allows service tax paid on advances to be claimed for supplies made after GST commencement, subject to prescribed calculation. A taxable person may take transitional credit for service tax paid under the existing law to the extent supplies are made after the appointed day, including service tax paid on advances relating to those supplies, subject to the prescribed method of calculation; such credit must be claimed and disclosed under the prescribed transitional procedure and reported in the annual return components that capture transitional credit.