Refund of Excess service tax paid, Service Tax

[Prakash Gupta]

Dear All,

Need your view below mentioned issues:

A Company had received advance of ₹ 10,00,000/- in May 2017 (in Pre GST regime) from a customer and paid service tax of Rs. 130,344/- on the same at the time of receipt of the such Advance.

The Company has rendered service to its customer in the month of May 2018 (post GST regime) and raised invoice of ₹ 20,00,000/- alongwith GST of ₹ 360,000/-. The company has also deposited GST of ₹ 360,000/- to Govt of India without adjusting service tax of ₹ 130,344/- paid earlier.

With the above background, I have below mentioned queries

1. What will be the fate of service tax of ₹ 130,344/- paid by the company in pre GST regime?

b. Whether the Company can file refund claim from service tax/GST department?

Posts / Replies

[KASTURI SETHI]

Dear Querist, Yes. You are entitled to refund . Here the question arises whether you have paid Service Tax or GST in excess. As per Point of Taxation Rules in pre-GST era, the date of taking the advance was point of taxation. You rightly complied with Service Tax law at that time. This issue has to be examined keeping in view the nature of service and also in the light of atest clarification of the Board. Board has issued Clarification on this issue which has to be searched.

[DR.MARIAPPAN GOVINDARAJAN]

You can get refund under service tax provisions within the limitation period

[YAGAY and SUN]

We endorse the views of experts.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir's view.