OFFICE OF THE PRINCIPAL COMMISSIONER  SERVICE TAX II, MUMBAI

13th Floor, Air India Building, Nariman Point, Mumbai-400 021.

F.No.ST2/Dn X/GST/47/2016-17

Mumbai, the  Dated: 02nd March’ 2017

Sir/Madam,

Subject: – Migration of Service Tax Assessees to GST: – Reg.

As you are aware that, the process of migration of the existing Service Tax assesses to GSTN is on. All the existing Service Tax assesses have been assigned provisional user ID and password for migration which can be viewed at www.aces.gov.in.after login with your current TIN and Password. While the present Service Tax Exemption threshold is Rs.10 Lakhs, in GST it would be Rs.20 Lakhs aggregate turnover. However, threshold of aggregate turnover shall not be applicable in the following cases and they are required to register themselves.

  • Persons making any Inter-State supply;
  • Casual taxable persons;
  • Persons who are required to pay tax under reverse charge.
  • Non-resident taxable persons;
  • Who are required to deduct tax (ie. TDS)
  • Persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise;
  • Input Service Distributors (ISDs);
  • Persons who supply goods and/or services, other than branded services, through electronic commerce operators;
  • Every electronic commerce operator and persons required to collect tax at source (TCS);
  • An aggregator who supplies services under his brand name or his trade name;

2. Also, while the present aggregate turnover of Rs.10 Lakhs in Service Tax is only for taxable services, the aggregate turnover of Rs.20 Lakhs under GST would include all aggregate turnovers as defined under model GST Act. You may like to go through model GST laws available in www.cbec.gov.in under the heading GST. Definition of aggregate turnover as contained in Section 2 (6) of Model GST law is reproduced below:-

“means the aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and/or services of a person having the  same PAN, to be computed on all India basis and excludes taxes, if any, charged under the CGST, SGST Act and the IGST Act, as the case may be;

Explanation:- Aggregate turnover does not include the value of supplies on which tax is levied on reverse charge basis and the value of inward supplies.

3. Considering the above aspect you are requested to provide the following information.

i. Whether your turnover for the year 2016-17 is likely to exceed Rs.20 Lakhs?

ii. If no, whether you would be migrating to GST in view of the above stated provisions under Model GST laws?

In views of the you are requested to complete migration process and update the status accordingly.

4. In case of any doubt, you may contact us at 022-22897691/696 or email atacdiv10-st2mum@gov.in. The above information may please be submitted to this office by 04.03.2017 positively.

Yours sincerely,

Assistant Commissioner, Div-X

Service Tax-II, Mumbai

Further Email Communication in Regard to Above on 03.03.2017

Dear Tax Payer,

Kindly refer to this office e-mail dated 02.03.2017 sent from Service Tax-II, Mumbai. 

In this regard attention is invited to the definition of ‘’Aggregate Turnover’’ in para 2 of the attachment to the above referred e-mail dated 02.03.2017. It is highly regretted that the old definition of ‘’Aggregate Turnover’’ prior to revised Model GST law was inadvertently reproduced in the said para. The definition of aggregate turnover has been revised as per the revised Model GST law of November 2016.

As per Section 2(6) of the revised Model GST law, the definition of aggregate turnover is:

 “aggregate turnover” means the aggregate value of all taxable supplies, exempt supplies, exports of goods and/or services and inter-State supplies of a person having the same PAN, to be computed on all India basis and excludes taxes, if any, charged under the CGST Act, SGST Act and the IGST Act, as the case may be;

Explanation: – Aggregate turnover does not include the value of inward supplies on which tax is payable by a person on reverse charge basis under sub-section (3) of Section 8 and the value of inward supplies.”

In view of the above you are requested to migrate to GST accordingly.

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Category : Goods and Services Tax (3092)
Tags : goods and services tax (1656) GST (1240)

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