Service tax under RCM paid in October, 2017 and carry forwarded as Transitional Credit

[Bishan Shah]

Respected Experts,

Seeking your expert knowledge with reference of positive judgements in case where service tax paid under reverse charge mechanism in October, 2017 carried forwarded as Transitional Credit. Can anyone please guide Legal reference to claim such credit as transitional credit.

Thank you so much.

[KASTURI SETHI]

Observations made by High Court can help you. Ratio is applicable to your issue.

2022 (3) TMI 544 - MADRAS HIGH COURT GANGES INTERNATIONAL PVT. LTD. Versus ASSISTANT COMMR. OF GST & C. EX., PUDUCHERRY

[Padmanathan KV]

Agreed, with Kasthuri Sir. Also see Circular No. 207/5/2017-Service Tax dated 28-09-2017.

AI Summary

Transitional credit for reverse-charge service tax can be claimed where judicial observations and service tax circulars support carryforward. Whether service tax paid under the reverse charge mechanism in October 2017 can be carried forward as transitional credit for GST is dispositive; the discussion cites High Court observations as directly applicable and an administrative circular from 2017 as supporting authority, indicating these sources may justify treating RCM-paid service tax of that period as transitional credit where factual and documentary conditions of the transitional rules are met.