TaxTMI 
TaxTMI 
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
Supplier charged Lower GST rate, Goods and Services Tax - GST
26 May 2023 
5 Replies 
2962 Views Asked by
Supplier liability for undercharged GST may be recovered from buyer under contract terms, with ITC consequences considered.
The supplier remains primarily liable to remit any undercharged GST; recovery of the differential from the buyer depends on contractual terms, and the supplier can issue a debit note to seek reimbursement. Input Tax Credit consequences must be considered, including potential ineligibility where taxes are paid under specified enforcement provisions (Section 17(5)(i) and Rule 53(3) of the CGST Rules, 2017). Established jurisprudence recognises the seller's primary tax liability even where tax is collected from purchasers. (AI Summary)
The supplier remains primarily liable to remit any undercharged GST; recovery of the differential from the buyer depends on contractual terms, and the supplier can issue a debit note to seek reimbursement. Input Tax Credit consequences must be considered, including potential ineligibility where taxes are paid under specified enforcement provisions (Section 17(5)(i) and Rule 53(3) of the CGST Rules, 2017). Established jurisprudence recognises the seller's primary tax liability even where tax is collected from purchasers. (AI Summary)