Goods and Services Tax - ITC, Goods and Services Tax - GST

[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?

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

Normally the Department will not object your paying tax at higher rate. But they may raise a query that you have paid the tax at higher rate to facilitate your receiver to avail excess ITC then the eligible one.

[KASTURI SETHI]

It is legally wrong to charge GST @ 18% instead of correct rate of 12%. The department will raise objection regarding excess availment of credit as rightly opined by Sh.Ranganathan Sir. The person who has deposited the said with the Govt. may claim refund within stipulated period. The department is not supposed to keep track on such refunds, if any arises. So the department will resort to recovery of excess credit taken by the buyer/receiver.

[Ganeshan Kalyani]

If you charge higher rate then your rate of service will go high. It would be good for the competitor.