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Service Tax Vs GST - For interstate supply

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Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 10 March 2020

Earlier in service tax , tax payer used to get ITC on input services on all India basis through invoice.

But in GST- ITC can't be claimed on all India basis due to place of supply provisions in few cases..

Is this statement is correct??

Replies (2)

Quick Summary

This discussion clarifies a key difference between Service Tax and GST regarding interstate supplies. While Service Tax allowed all-India Input Tax Credit (ITC) on input services, GST's place of supply rules can restrict ITC claims in certain scenarios. The consensus is that this change is correct but highlights a potential drawback for the service sector, which ideally should have broader ITC eligibility.