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,

AI Summary

Collection and deposit of GST: supplier remits tax; recipient who withholds reverses input tax credit and pays interest.
Suppliers must collect and remit GST charged on supplies and are liable to deposit that tax by the statutory due date; if a recipient fails to pay the invoice value and tax within the prescribed period, the recipient must add the input tax credit claimed to its output tax liability and pay that amount with interest, and may re avail the credit upon actual payment.