Can Customer Hod GST Amount And Pay Base Price

[Prashanth Jadhav]

Dear Sirs/Madam,

We had sold IT hardware and goods in the month of March 2018.

The customer has held our GST amount and paid the base price of the product.

Informing that I have to pass an Input Tax credit.

Can the customer withhold the tax for such a long time.

Or he should pay and then approach the National Anti profiteering Authority

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I had submitted a query a few months ago and the members of the Forum were kind enough to reply.

ID: Issue ID: 114184:

We had received a Purchase Order for supply of IT Hardware goods in February 2017. With the delivery Date being 05/07/2017.

The Purchase Order Had Expired after this date due to site readiness issues at the customer end.

The Purchase order was amended so that the delivery can be carried out. The revised purchase order mentioned SGST 9% and 9% CGST applicable with the purchase price remaining the same.

Based on this the materials were delivered to the customer on 19/03/2018.

While we had submitted our invoice for payment realization, the customer has with held the Tax component and released the base value of the product.

The reason behind it is they would want credit for CVD and SAD components as the PO was placed during the VAT regime.

Request you to please advise on the validity of this demand by the customer and his holding of the taxes.

On our part since they had issued a revised PO we had purchased the goods under the GST regime for the whole chain (Supplier, Distributor and Importer)

Please let us know if the customer is correct in his claim that it attracts anti profiteering clause.

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Warm regards,

[KASTURI SETHI]

As per Section 9 (1) of CGST Act, 2017 it is statutory duty of taxable person to collect GST and deposit with Govt. Tax is Govt. exchequer and cannot be withheld beyond due date. 20th of the following month is the last date to deposit and make payment into Govt. account from electronic cash ledger or credit ledger. Thereafter, interest will be charged from the defaulter. Also read definition of Time of supply under Section 12 of CGST Act,2017. You are supplier so you are liable to deposit tax with Govt.

[SHARAD ANADA]

Please refer sec 16(2) of CGST Act 2017 and rule 37 of CGST Rule 2017. According if recepient fails to make payment within 180 days from the date of invoice he has to add ITC of such unpaid amt in his output tax liability and pay the same along with interest @18% from the date of availment till the date of payment.

Sec 16(2) proviso

Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed:

Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon.

[KASTURI SETHI]

I also concur with the views of Sh.Sharad Anada. In GST regime, noose of law does not spare defaulter recipient also.

[Ganeshan Kalyani]

In GST everything is transparent.