Currently Input of Swachh Bharat Cess not available
Also input of Krishi Kalyan Cess can be utilized against Krishi Kalyan cess
Example 1
Service Received
| AIRTEL | |
| Telephone Bill | 4000 |
| Add | |
| Service Tax @ 14% | 560 |
| Swachh Bharat Cess @ 0.5% | 20 |
| Krishi Kalyan Cess @ 0.5% | 20 |
| Total | 4600 |
Service Provided
| Service to X Ltd | |
| Consultancy Service | 10000 |
| Add | |
| Service Tax @ 14% | 1400 |
| Swachh Bharat Cess @ 0.5% | 50 |
| Krishi Kalyan Cess @ 0.5% | 50 |
| Total | 11500 |
Make Service Tax Computation
| Partoculars | Service Tax | Swachh Bharat Cess | Krishi Kalyan Cess | Total |
| Output Service Tax | 1400 | 50 | 50 | 1500 |
| Input Service Tax | 560 | 0 | 20 | 580 |
| Service Tax Payable | 840 | 50 | 30 | 920 |
After implementation of GST,all these cess will be abolished
There will be Central GST and State GST in this case also
| AIRTEL | |
| TELEPHONE | 2000 |
| CENTRAL GST 12.5% | 250 |
| STATE GST 5% | 100 |
| Total | 100 |
| Service to X Ltd | |
| Consultancy Service | 10000 |
| CENTRAL GST 12.5% | 1250 |
| STATE GST 5% | 500 |
| Total | 11750 |
| PARTICULARS | CENTRAL GST | STATE GST | TOTAL GST |
| OUTPUT GST | 1250 | 500 | 1750 |
| LESS | |||
| INPUT GST | 250 | 100 | 350 |
| GST PAYABLE | 1000 | 400 | 1400 |
Remarks
No Input of Swachh Bharat Cess currently obviously created confusion and complexity which has been thankfully avoided in GST
However,Government should ensure that Total Rate of State GST+ Central GST should be ideally equal to current rate of Service tax i.e. 15%
Otherwise more tax will be payable by customer
