Treading GST Path XXII - GST Vs Service Tax - What is payable during transition?

Dear Mr. Natarajan for your kind information the Point of Taxation rules were issued by the government under the authority of section 94 of the Finance Act, 1994 and this act is still valid for the acts done under the said act. Point of Taxation rules must be read in consonance with the provisions of Finance Act, 1994 which give 30 days time to issue invoice after completion of service. POT rules have no relevancy with the provisions of CGST or SGST Act. If your view is accepted then whether the RCM on manpower, security, rent a cab etc. will cease to effect because invoice was issued on or after 01.07.17. Will you change the old interest rate of 15% to 12% or 18% under sec. 50 of CGST act. Will you treat the Works contract (other then immovable property) as a supply of goods or services or composite supply? Will you pay tax on GTA at 5% or abated value of 30%? Will you pay 18% tax on full value of constructions contracts without taking any abatement and with ITC of inputs, CG and services or old rates? And what about tax on hotels and restaurents? So please stop confusing assessee who are already facing many problems during transition. All the issue relating to levy and collection of service tax will always be govern by the Finance Act 1994 and no other law. The CGST or SGST law are applicable only from 01.07.2017 and activities done prior to its date of implementation will always be covered by respective laws.

deepak joshi 08/07/2017