My client is a tour operator and a partnerhsip firm. They have to pay service tax quarterly. In June 2017 they have received advances in full for tours to be conducted in August and October 2017. Assuming GST starts from 1.7.17 then this is our query:
1. As advance has been received in June service tax in full is to be paid by July 5th 2017.
2. The service will be provided in August and again in October 2017 at that time there will be no service tax so GST invoice will have to be raised.
3. The service tax is being paid as tour operator 9% but the GST rate is 5% so what will happen to the 4% difference.
4. As service tax has already been paid in full on that amount no GST will eb deposited against the same.
Please clarify what is the correct procedure to be followed in this regards
Thanks
Sujoy Das
CAclubindia
