Service tax paid on advance received from Customer, how can we adjust in GST

[Seshasai Singaraju]

Dear Expert,

We need help on below mentioned issue under GST at present, the details given below;

The Company is in business of Outdoor Catering Service, we received mobilisation advance from customer in January,2017, the advance amount will be paid after 21st month in 20 equal installments.

We paid service tax on mobilisation advance under Outdoor catering services on 29-06-2017.

But we are not shown any carry forward input in Service tax return and not shown in Trans-01.

Under GST Act ;

1) How can we recover this advance service tax amount

2)How can we show in the GST Returns.

3) How can we raise the invoices to the customer

[KASTURI SETHI]

You are advised to go through the decision of AAAR West Bengal reported as 2020 (32) GSTL 790 (App.AAR-GST-WB) = 2019 (12) TMI 1244 - APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL Applicant : Siemens Ltd.

AI Summary

Service tax on advance: guidance on recovery, input adjustment and invoicing under GST referencing AAAR precedent. Treatment of service tax paid on mobilisation advance received before GST commencement and its adjustment under GST: the user paid service tax on an advance for outdoor catering and seeks guidance on recovery from the customer, presentation in GST returns, and invoicing; respondent referred to an AAAR West Bengal precedent for guidance on transitional treatment and procedural steps.