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What to charge, GST or service tax?

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Mohan Kale

260 Points Posted on 17 June 2021

Commission service was provided in pre-GST period however bill was inadvertently not raised. Now if I raise the sales bill for said service then whether GST to be charged or service tax? Though service was provided yet money has not been received.

Replies (4)

Quick Summary

This discussion addresses the query of whether to charge GST or Service Tax on a commission service provided before the GST regime, but for which the bill was inadvertently not raised. Although the service was rendered in the pre-GST period, the invoice is being raised now after receiving a brokerage statement from the party for FY 2016-2017. The consensus leans towards applying Service Tax as there's documentation supporting the service was provided during the pre-GST era.

CMA Poornima Madhava

CMA

9106 Points Posted on 17 June 2021

I think raising gst invoice is a better option because even the payment is so far not received.

Mohan Kale

260 Points Posted on 17 June 2021

But the service was provided in PRE-GST period for which the brokerage statement has been generated by the party in that period.

CMA Poornima Madhava

CMA

9106 Points Posted on 17 June 2021

This fact was not mentioned in your query. In this case, since there is a document in support of the claim that the service was provided during pre-GST regime, service tax is applicable.

How can this invoice be generated now! Let's see if someone could help in this regard.

Mohan Kale

260 Points Posted on 17 June 2021

Thanks. The party provided the brokerage payable to us statement now. As the statement was not given earlier we could not generate the tax invoice till today. Now the party gave us statement for FY 2016-2017 and we want to issue tax invoice.