Certain transitional issues arising with respect to payment of service tax after 30th June 2017 - GST - TRADE NOTICE NO. 11/2017-GST

OFFICE OF THE PRINCIPAL COMMISSIONER OF CENTRAL TAX HYDERABAD GST COMMISSIONERATE: GST SHAVAN : LB-STADIUM ROAD BASHEERBAGH HYDERABAD- 500 004 C.No. IV/16/41/2017-CT(Tech) Date: 03.10.2017 TRADE NOTICE NO. 11/2017-GST Sub: Certain transitional issues arising with respect to payment of service tax after 30th June 2017 - regarding. Kind attention is invited to the Central Board oi Excise and Customs (CBEC) Circular No. 207/5/2017-Service Tax dated 28.09.2017, on the subject mentioned above. The Board after examining two such issues, which have arisen in the above context, issued following clarifications; 2.0 Reflection of transitional credit arising out of payment of service tax on reverse charge basis after 30 th June 2017 and by 5 th /6 th July 2017 2.1 There were certain instances of assessees, who had chosen to till 5 th /6 th July 2017 to make the payment of service tax on reverse charge basis, instead of paying the same by 30.06.2017- These cases would be the ones where the service was received before 1-7-2017 and payment for the value of the service vas also made before 1-7-2017. Since the input tax credit in cases of payment under reverse charge would be available only after payment of service tax, these assessees had doubts as to whether the details of credit should be included in the return in Form ST-3 or in Form GST TRAN-1. 2.2. The matter has been examined. In such cases, details of credit arising as a consequence of payment of service tax on reverse charge basis after 30 th June 2017 by 5th / 6th July 2017, the details should be indicated in Part I of Form ST-3 in entries, 13.1.2.6, 13 2.2.6 and 13 3.2.6. Linked entries should be made in Part H of Form ST-3- In case the return has already been filed by or after the due date, these details should be indicated in the revised return, the time for filing of which is 45 days from the date of filing of the return. 2.3. It is necessary to give compliant assessees who had filed their ST 3 return by the due date or some days later, an immediate and viable window in which a revised return can be filed consequent to the issue of this instruction. Hence all ST3 returns for the period 1-4-2017 to 30.069017 which have been filed upto and inclusive of the 31 st day of August 2017, shall be deemed to have been filed on 31.08.2017. This will give all such assessees some more days to file a revised return, if necessitated. Once details of such credit are reflected in the ST-3, the assessee may proceed to fill in the details in Form GST TRAN-1. It may be noted that as on date, GST TRAN-1 can be filed upto 31.10.2017 and can also be revised. 3.0 Payment of service tax on or after 1-7-2017 as a consequence of detection of evasion or any other circumstances 3.1. This issue will arise only in the case of assessees who were not registered under ACES. It may be recalled that in the registration module of ACES, there is a category of non assessee registration . This may be used to obtain registration and make payment of service tax. Any difficulty in this regard may be resolved with the office of the Additional Director General, Directorate of Systems and Data Management, Chennai. 4. All the members of the Regional Advisory Committee and Trade Associations, Chambers of Commerce in the State of Telangana are requested to circulate this Trade Notice among their constituent members for information. (NARESH PENUMAKA) Principal Commissioner