GSTR7 VS GSTR3B

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A contractor received a work order before July 2022, with GST at 12%. Payment and GSTR3B filing also occurred at 12% after July 2022. However, the department has issued a notice demanding the difference of 6% GST, plus interest and penalty, citing Notification 3/2022 which increased the rate to 18% for construction work after July 2022. The contractor is seeking advice on how to proceed.

Pawan Gupta

Pawan Gupta (Querist)

11 July 2025 I am a contractor i got the work order before july 2022 and recieved the payment after july 2022 the department paid me tax @ 12% and i also paid the gst through gstr3b @12% now i recived a notice from department asking me to pay tax @18%
What should i do now

Pawan Gupta

Pawan Gupta (Querist)

13 July 2025 Plz reply its urgent

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 July 2025 If the rate of the work is at 12%, you can reply that the invoice dates are after July 2022, and the GST charged as per the date.

Pawan Gupta

Pawan Gupta (Querist)

13 July 2025 Sir the gst paid to me after july 2022 was 12% but the gst department is asking me to pay 18%
As i have already paid with 12% they are asking to pay remaining 6% with interest and penalty

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 July 2025 You need to explain the rate as after July 2022 are 12% & not 18%, so the claim of 18% is not correct.

Pawan Gupta

Pawan Gupta (Querist)

13 July 2025 Sir as per notification 3/2022 dated 13/07/22 the rate for construction work was changed from 12% to 18%
But I received the work order before july 2022 in which the gst rate was 12% but the gstr7 filed by department was after july 2022
I paid the gst as per work order as i recived the tax @12%
Now i recived a notice asking me to pay @ 18% as per notification 03/2022

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 July 2025 In that case you have to ask from the Govt. department to compensate the difference and pay the GST at 18%.

Pawan Gupta

Pawan Gupta (Querist)

13 July 2025 Thank u for reply sir means a lot

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 July 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

26 September 2025 Good luck...