Till 30th Jun we have raised our invoice to our customer with Service Tax @ 15%. Do we need to deposit service tax for all the inovices and file the ST return from Apr 17 to Mar 17 even if we have received the collection against these in coming months (Jul 17, Aug 17 & Sep 17)?
Ans :- You need to pay Service Tax to the Department and If possible revise the service tax return.
We have paid GST on 18-Aug-2017 of all invoices raised in the month of Jul 17 and GST paid on 18-Sep-2017 of all invoices raised in the month of Aug 17. Is this correct under cash based accounting even if we have not received payment of the entire invoice till date?
Ans :- Yes, you need to pay GST for the amount received. Its better to move to accrual basis of accounting.
If we need to pay GST on accrual basis then our do we account our revenue in our books of account (still on receipt/cash basis or accrual basis)? e.g. : Invoice Date is : 10-Jul-2017, GST Paid on 18-Aug-2017 and Payment received against this invoice is on 10-Sep-2017. On which date we need to book this invoice in our books of accounts ?
Ans :- In accrual basis 10/7/2017.
Expenditure
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Note: all supply of services taken before invoice date.
Our GST register customers are raising invoice to us and we are getting auto updated GST entries on GST portal. Do we need to take input of all the eligible input credit entries in the same month or we should wait till the payment to supplier ? e.g. Supplier Invoice date is 15-Jul-2017 and he uploaded the invoice on GST portal on same date and the same invoice reflecting in our GSTR-2, but we have made the payment of this invoice on 25-Aug-2017. So Under cash based accounting, do we need to take input in the month of Jul 17 or in the month of Aug 17 ? if we need to take input in the month of Jul 17 then should we post the same in our books accounts in the month of Jul 17 (date of Invoice) or in the month of Aug 17 (date of Payment).
Ans :- Please follow accrual basis. Much of your problem will be solved. Regarding input tax credit just refer 16(2)
If supplier supplies the service in pre-GST period and raised the invoice in pre-GST period, we have made the payment in the month of Jul 17 and Aug 17 and same invoice falls under RCM. Then are we liable pay GST under RCM under cash based acccounting or we should leave this because this is pertains to pre-GST period?
Ans :- You can leave that.
Suppose, There is a invoice dated pre-GST period (service taken pre-GST period) and we have made some payment against the invoice in pre-GST period but some balance paid in post-GST period. The same invoice not falling under Service Tax RCM (pre-GST) but falling under GST RCM towards > 5000 in a day (post-GST). Do we need to pay GST on balance amount which we have paid in post-GST period? If we need to pay GST on balance bill amount then how will we post this transaction in our books of accounts.
Ans :- Yes, you need to pay GST on balance amount and in your books GST will be available as input tax credit.
If we should pay GST on outward supply of service on accrual basis then should we follow the same practice for inward supply of services under cash accounting or we should follow cash based method for inward supply of services.
Ans :- No, there is no concept of cash basis of accounting in GST. You are advised to move to accrual basis for the whole accounting.
