CBEC Clarified Treatment of transitional credit of Service tax

CBEC Clarified Treatment of transitional credit of Service tax: Clarification regarding reflection of transitional credit arising out of payment of Service Tax on RCM basis after 30th June 2017 and by 5th/6th July 2017. Central Board of Excise and Customs (CBEC) has clarified Certain transitional issues arising with respect to payment of service tax after 30th June 2017 by vide its circular No. 207/5/2017-Service Tax dated 28th September 2017 CBEC, in its circular, clarified that in cases where service was received before 1.07.2017 and payment for the value of the service was also made before 1-7-2017, but the service tax was paid by 5th /6th July 2017 on reverse charge basis instead of paying the same by 30th June 2017, details of credit should be indicated in Part I of Form ST-3 by filing a revised return. Since Input tax credit in case of reverse charge is available after making the payment of service tax, assessees had doubts as to whether the details of the credit should be included in the return in Form ST-3 or in Form GST TRAN-1. The matter has been examined, In such cases, details of the credit arising in the consequence of payment of service tax on reverse charge basis after 30th June 2017 by 5th/6th July 2017, the details should be indicated in Part-I of the ST Return in Entries I3.1.2.6, I3 2.2.6 and I3 3.2.6 In case return has already filed then these entries should be indicated in revised return. In order to give compliant assessees who had filed their ST 3 return by the due date or some days later, an immediate and viable window to file revised returns, all ST3 returns for the period 1-4-2017 to 30-6-2017 which have been filed upto and inclusive of the 31st day of August 2017, shall be deemed to have been filed on 31-8-2017. This will give all such assesses some more days to file revised ST-3 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. Refer Notification in JPEG and PDF   To Download Official notification No. st-circ-207-5-2017 Click Here