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What payment to be made for transaction related to before GST era

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CA SHIVAM JAIN

6 Points Posted on 11 October 2023

If a company "A" has issued order for day to day maintenance work on firm "B" on dated 01/11/2013 for rs. 10+2.36(service tax @ 12.36%) for one year.
Firm B while submitting invoice didn't produced other required documents so company A could not process firm B's payment.
now on 2022 firm submitted all documents and asking for its dues payment.
now on the same service GST is 18%.
so what the company should do in this situation. what amount it should pay to firm and please quote relevant provision in this regard????
thanks in anticipation

Replies (4)

Quick Summary

This discussion addresses a company's query regarding payment for maintenance services initiated before the GST era but invoiced and claimed in 2022. The key issue is whether the current GST rate of 18% applies to a transaction that occurred under the previous service tax regime. The consensus suggests that the payment should be made as per the original invoice, with tax applicable based on the rates in effect at the time the service was rendered or agreed upon.

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 11 October 2023

In general views,
Tax is extra for the value of supply in any manner. So, Tax will be pay as per current Tax.

CA SHIVAM JAIN

6 Points Posted on 11 October 2023

Sorry but couldn't understand your opinion..please would u able to explain further?

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 11 October 2023

-->Firm B while submitting invoice....

Ans : So, Form B Submitting Invoice. Payment Payable as per invoice...

--> now on the same service GST is 18%

Ans: So what...! Now, Both can be act with GST...

--> what amount it should pay to firm

Ans : No Confusion. The payment as per B's invoice...