Goods and Services Tax - ITC

[Ethirajan Parthasarathy]

A company executing Job Work in the nature of manufacturing for registered person and charges 18% GST instead of 12%.

I presume this should not come in the way of receiver of service taking full credit for 18% GST paid to the supplier.

Will there be any action taken on the supplier having collected higher rate of tax (which is promptly remitted)

Is my view is correct?

AI Summary

Input Tax Credit: receivers may claim credit on higher GST payments, but excess credit can be recovered.
A supplier charging and remitting a higher GST rate for job-work manufacturing is legally incorrect; recipients may initially claim Input Tax Credit on tax paid, but the tax authority can query and recover any excess ITC. The supplier who deposited the excess tax may file for refund within the stipulated period; authorities will focus on recovery of excess credit and correcting tax classification.