Service tax credit not carry forward in trn-1

If you would have paid tax payable for quarter Apr-Jun by 30/06/2017 then you could have taken this credit in previous quarter and then forwarded it through Trans1. But now you will have to forego this tax of rs. 5000.

Mr. Aggarwal ----- But our company is Ltd. and we have paying service tax in every month not Qrt. ending format ... as per rules how can we take credit before tax paid in GTA service ... Our practice was : Tax for Apr -- Paid on May and took credit on May etc.

Also if you were paying monthly you could have paid June tax on last date itself. there was a notification I will search and tell u that disallow this credit if paid in July.

you can claim this as input ITC for july

Section 140 of the CGST Act, 2017 provides availability of credit forwarded in the return relating to the period ending with the day immediately preceding the appointed day, furnished by registered person under the existing law.

The above provision obviously does not allow the credit of service tax paid on or after the 01.07.2017 for the period of June 2017 or quarter ending June,2017, as the case may be. Therefore, it should be ensured that the tax liability under Reverse Charge Mechanism for the period ending June 2017 may be made latest by 30th June. So that deposited amount may be shown as cenvat credit in the return for the period ending June 2017.