Hi Experts,
One of my vendor has been charging me 12% GST for the last 2 years. And due to his assessment with GST authorities he got clarity that the item was supposed to fall under 18% GST rate. Now he is asking me to pay the 6% differential GST of the last 2 years.
Am i liable to pay the same. If yes can i claim ITC in current year?
Vendor Seeks 6% GST Differential After Rate Clarification; Buyer Can Claim ITC with Timely Debit Note Per Section 16(4. A vendor has been charging 12% GST for two years, but recent clarification indicates the correct rate is 18%. The vendor now seeks the 6% differential for the past two years. Participants in the discussion advise that the buyer is liable to pay the differential amount and can claim Input Tax Credit (ITC) if a supplementary invoice or debit note is issued in the current financial year. The timing of the debit note is crucial for claiming ITC under Section 16(4) of the CGST Act. Contractual terms may affect the buyer's obligation to pay the additional GST. (AI Summary)
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