Supplier charged Lower GST rate, Goods and Services Tax - GST

[Mukesh Mudi]

Mr A purchase goods from Mr. B.

Invoiced GST rate of goods is 12% instead of charging 18%.

Who is responsible for paying the differential 6% . Buyer or Supplier

AI Summary

Supplier Responsible for GST Rate Differential; Can Recover from Buyer via Debit Note; ITC Claims Limited by GST Act Sections. In a discussion about a supplier charging a lower GST rate, it was debated who should pay the 6% differential when goods were invoiced at 12% instead of 18%. The consensus among participants was that the supplier is primarily responsible for paying the differential tax, but they can issue a debit note to the buyer to recover the amount. Contractual terms between the buyer and supplier play a crucial role in determining the financial responsibility. It was noted that the buyer cannot claim Input Tax Credit (ITC) on tax paid under certain sections of the GST Act.