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Service tax credit not carry forward in trn-1

sujit naha (accountant) (347 Points)

02 October 2017

Our Service Tax catagory was : G T A ....

We paid GTA Service Tax for June'17 of Rs.5000/- on 10th July 2017... As per GTA Service Tax Rules we can not take credit of Rs.5000/- before 10th July 2017 i.e. on June...( Rules: Can take credit after payment of Service Tax)

Also there is No Provision to Put Credit amount in July of ST3 Return(Apr to June) because July-Aug-Sept Columns are BLOCKED.

Question: keep in mind regarding violation of Rules then how to take Credit of Rs.5000/- on June otherwise it is not appear in ST3 return ... Please suggest

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5 Replies

anshul aggarwal (Consultant) (1074 Points)
Replied 02 October 2017

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.

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sujit naha (accountant) (347 Points)
Replied 02 October 2017

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.

anshul aggarwal (Consultant) (1074 Points)
Replied 02 October 2017

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.

g mahesh Mundra (Business and tax consultant) (3293 Points)
Replied 03 October 2017

you can claim this as input ITC for july

anshul aggarwal (Consultant) (1074 Points)
Replied 03 October 2017

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.