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Excess payment of service tax up to june 2017

Rajib Saha (Accounts Officer) (239 Points)

28 July 2017

Sir,

A Firm is registered under Service Tax , now migrated to GST. During April- June 2017 quarter, it had, by mistake, made excess payment of Service Tax of about Rs. 1.50 lakh. The Firm has GST liability in JULY 2017. The Firm has not yet filed Service Tax Return for APRIL-JUNE 2017 quarter. My query:

1. Whether the Firm can adjust the excess payment of Service Tax made in in June quarter with the GST liability of July 2017.?

2. If so, how it will be reflected in GST Return for July 2017 ? It has accrued a GST liability of Rs. 6.5 lakh during July ( till 28.07.2017).

3. How the excess payment of Service Tax will be reflected in ST Return for June 2017 quarter?

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4 Replies

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 29 July 2017

as far as I know excess payment made in service tax can only be adjusted toward future payment or refund is provided...but in any case same is not credited to cenvat credit account....whereas in gst only cenvat credit balance will be transferred.....hence you will not get any benefit of it under gst...however you can still claim service tax refund under service tax.....

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CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 29 July 2017

in return of service tax just show the amount which should be collected as service tax......this will be less than the amount you have deposited....claim balance as refubd

Thilak K S (Artical Assistant) (22 Points)
Replied 22 September 2017

By mistake i have paid CGST in excess of RS. 38706/- instead of paying to SGST in the month July. But, in August month i cann't cross utilize excess paid amount because in august month i have CGST liability of RS.110862 and also IGST ITC of RS.109529/- as per law permits i can set off by IGST ITC to CGST Liability to the extent of Rs. 109529 and remaining Rs.1332/- can only set off from the excess paid amount in the month of July ie., Rs.38706/-. So, alternatively i am planning to utilize Rs. 72156/- (CGST LIability of Aug Rs.110862 less Excess amount paid in the month of July to CGST Rs.38706/- so that i can retain Rs. 37373/- as IGST credit which can be utilize in the next comming month by making short payment to the extent of carry forward ITC.

Can any one suggest me that my approach is correct or not.