I have raised an Invoice in April & June with Service tax rate @15% and remitted the ST. But now the customer is telling that the invoice has to be canceled and needs to be issued a fresh invoice with GST.
So, my question is: Can we cancel the Invoice now?. If "yes" how to get back the ST amount which we had remitted. If "NO" what is the reason.
12 August 2017
it depends whether you provided services before GST or after GST. If before GST, then transaction is already completed and no questions can be raised about the same as the invoice has been already issued and payment has been made.
12 August 2017
Dear Shahikant, Thank you for the answer. Actually, the invoice has been raised before the GST but the payment not yet received. Now the customer is asking that the same invoice has to be raised again with a different amount and GST then only they will make a payment. But my question is: Can we do this thing. If we did we are losing the ST amount.
12 August 2017
when services are provided? prior to GST or After the GST? if prior to GST then whatever taxes you have paid are correct and you can demand the same from them. it was there mistake that they are making late payment. According to Point of Taxation rules in service tax, if services are provided prior to tax rate Change and invoice is also issued but payment not made then point of Taxation is invoice date.
if services are provided after GST implementation, then revise service tax return accordingly and claim excess paid service tax as input tax credit, do not ask for refund instead carry forward the tax credit to next period, and in GST return claim that excess paid tax as credit for current period.
CAclubindia
