St-3

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Swami Ayyappa Nuli

TAX ADVISOR & CONSULTANT AT G.S.T SUVIDH

997 Points Posted on 18 February 2016

My client provide taxable services of Technical Testing analysis and provides exempted service of Renting of Motor vehicle to G.T.A (which is exempt vide Mega exemption notification). He has not been availing any Cenvat Credit of duty paid on Input goods and services. while filing ST-3 he has not been mentioning exempted services turnover in return. Is there any Legal consequences?

Replies (3)

Kishore Reddy

92 Points Posted on 19 February 2016

I think there is no legal consequences as u are not taking any input from that and there is no further liability of the same if u show exempted services turnover in ur ST3. It's better to show in ST3 from now onwards in order to escape from scrutiny.

CA Prakash N

Head - Indirect Tax (GST & FTP)

331 Points Posted on 19 February 2016

As Mr. Kishorne said, there is no consequence of not showing exempted turnover as you have not taken any credit on input and input services. Please capital goods used exclusively for providing exempted service is also not eligible.

Cenvat Credit is beneficial law, which would help you to save unnecessary cash flow. So, My suggestion is to take credit and rectify this error by sending a letter to your range officer providing details of exempted turnover and option adopted to reverse credit as per Rule 6 of cenvat credit.