Service Tax in India: Legacy Law and Current GST Guidance
Service Tax was the central levy on specified taxable services under Chapter V of the Finance Act, 1994. With the introduction of Goods and Services Tax (GST) from 1 July 2017, the Service Tax regime was replaced for current supplies. Legacy Service Tax liabilities, proceedings, refunds, recoveries and other matters relating to the pre-GST period can, however, continue under the statutory saving provisions.
Service Tax FAQ, Answers and Legacy Guidance
The following internal articles relate to the former Service Tax regime and remain useful when dealing with transactions, notices, demands, CENVAT credit or litigation concerning the pre-GST period.
- What is Service Tax? Who was liable to pay Service Tax and what were taxable services?
- What is CENVAT Credit on input services and how was it claimed under Service Tax?
- What was the limitation period for a Service Tax demand?
- What were declared services under the Finance Act, 1994?
- What was the negative list of services and which services were exempt?
Service Tax to GST: What Changed?
GST was introduced on 1 July 2017 as a destination-based indirect tax on supplies of goods and services. For supplies made under the GST regime, liability is determined under the CGST Act, the applicable State or Union Territory GST law, and the IGST Act, together with notifications and rules issued under those laws.
For older transactions, the relevant Service Tax law must be applied according to the period in which the taxable event occurred. Historical Service Tax rates, exemptions, reverse-charge provisions, valuation rules and CENVAT Credit rules should therefore be checked against the law and notifications applicable to that particular period rather than applying current GST provisions retrospectively.
GST Registration for Service Providers
Under section 22 of the CGST Act, 2017, the general registration threshold for suppliers of taxable goods or services is based on aggregate turnover, subject to the lower threshold applicable in specified special category States and the compulsory-registration situations listed in section 24. Exempt or non-taxable supplies and specific notified categories can affect the registration requirement.
Because registration liability depends on the nature of supply, place of supply, turnover, exemptions and special statutory categories, taxpayers should verify their position under the current CGST Act, rules and notifications before applying.
GST Challan and Payment Status
GST payments can be made through the GST Portal. A challan may be generated through the Payments service, and the status of a payment can be tracked online. The GST Portal also provides taxpayer services for applications, ledgers and other account functions.
GST Refund Applications and Refund Status
GST refund applications are filed through the GST Portal in the prescribed form and manner. After filing, an Application Reference Number (ARN) is generated. The status of a refund application can be checked through the portal's refund or application-status services.
Legacy Service Tax Notices, Demands and Litigation
Although Service Tax is no longer the current levy on services, pre-GST disputes may still involve show-cause notices, adjudication, appeals, recovery, refund claims, CENVAT credit or other proceedings under the former law. The applicable provisions must be read with the repeal-and-saving framework in section 174 of the CGST Act, 2017 and with the law that applied during the relevant tax period.
This page provides general legal information. Tax treatment can differ according to the relevant period, facts, notifications, exemptions and judicial decisions.