In this blog, we look at a query on billing of services provided up to the day immediately preceding the GST appointed date.
If GST is implemented on Jul-01 can we continue to bill our clients in July for the services up to June and charge Service tax on such invoices?
No. All invoices issued on / after 01.07.2017 should be GST compliant. Service tax law will cease to apply on such invoices.
Ideally, for services provided upto 30.06, there should be a hard close of the invoices – should be issued not later than 30.06. However, if there are any revisions for the same (both upward or downward), the same may be effected by way of supplementary invoices, debit notes or credit notes, as the case may be during the GST period.
Note – such revisions would be liable to GST.
Legislative reference: Sections 142(11) and 173 of the CGST Act, 2017
Authors: Meghana Belawadi and NR Badrinath
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