GST RATE RETROSPECTIVE RATE INCREASE

[ANIL NAIR]

Dear Sir,

What will be the GST % for Su.Invoice/Debit Note issued against retrospective rate increase w.e.f 01.07.17 to 14.11.17 for the items whose GST % has been changed from 28 to 18%. (HSN 4016- vulcanized rubber parts)

Thanks

[KASTURI SETHI]

It is not retrospective. It is prospective. No benefit is admissible for the past period. In case the Govt. intends to give benefit for the past period, it shall be mentioned specifically in the notification itself. If nothing is mentioned, the date of issuance of notification is effective date.

[ANIL NAIR]

Sir,

The retrospective increase was given by our customers. i.e. the rates of our products were increased w.e.f. 1.7.17. The invoices for which were issued by us @ 28% GST. After 15.11.17 the GST % of the these items become 18%. My doubt is whether we have to charge 28% against the supplies made from 1.7.17 to 14.7 17 or the present 18%?

Thanks

[ANITA BHADRA]

Dear Sir

I agreed with Kasturi Sir's view . Any changes will be effective from the date of notifications unless specified for applicability with retrospective effect.

In your case , Supply from 01 July to 14 July will be 28% and only the items supplied w.e.f. 15 July , new rates will be applicable .

Here , time of supply plays a very important point . You have to ascertain time of supply as per Sec 12 of CGST Act for ascertaining rates .

Regards

[Mr Rao]

Dear querist,

I agree with the views expressed by the experts.

[ANIL NAIR]

Thanks for sharing your views

AI Summary

GST rate change applies prospectively from notification; supplies before notification remain taxable at prior rate, check time of supply.
A GST rate change is effective prospectively from the notification date; without explicit retrospective wording the new rate does not apply to supplies made before that date. The applicable rate is determined by the time of supply; supplemental invoices or debit notes claiming retrospective increase do not alter the operative rate unless the notification specifically confers retrospective effect.