If you are a Service Provider or a Tax Professional registered under Service Tax, please read this email carefully. This would help you reduce tax liabilities under GST.

• What is ‘Service Tax Credit’? – Your returns filed under Service Tax would indicate the amount of ‘excess/ unutilised balance of tax credit’. This is what is commonly referred as Service Tax Credit.
• Why pay attention to your ‘Service Tax Credit’? The Service Tax Credit can be carried forward as CGST credits under GST. Use this credit to pay for future tax liabilities under GST.

What do you need to do now?

• Duly file all your Service Tax returns for the last 6 months – Jan 2017 – Jun 2017
• If there was any information wrongly disclosed or not disclosed, revise your returns as soon as possible.
• Declare your credit balance to be carried forward to GST by filing GST Form TRAN-1 by or before 28th September, 2017
• Enjoy the benefits of using your old Service Tax Credits to pay for future tax liabilities under GST

Note: Do note you will not be able to carry forward the Service tax credit if you have not duly filed all Service returns for last 6 months (Jan – Jun 2017).