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India: Service tax audit allowed, despite enactment of GST law

India: Service tax audit allowed, despite GST law

The Calcutta High Court held that if provisions of Central Goods and Services Tax, Act 2017 also allowed for a service tax provision to apply (pursuant to the Finance Act (Service Tax), 1994, then both the goods and services tax (GST) and service tax provisions could apply.


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The case is: Gitanjali Vacationville Pvt. Ltd.

The taxpayer had challenged the tax authority’s plan to conduct a service tax audit pursuant to measures of the service tax law, and asserted that with enactment of the goods and servcies (GST) law, a service tax audit could not be conducted. The High Court disagreed, and held that the service tax investigation was permissible notwithstanding that the GST law was effective from July 2017.


Read a January 2019 report [PDF 712 KB] prepared by the KPMG member firm in India

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