Difference between purchase GST and sale GST

uma shankar (proprietor) (140 Points)

17 June 2022  

Scraps purchased from Govt. auction, contents are Iron, Copper, Alluminium, Silver , cables etc, GST @ 18% is charged. We shortout materials and sale charging applicable GST Rate. In case of Silver GST is @ 3%. On Sale of Silver we Charge GST @ 3%. Now GST authorities are asking that you have taken ITC @ 18%   and on sale charging @ 3% So pay us Balance @ 15%. IS it as per any Rule ? Which Rule empowers them to ask for this refund ? Please Guide us ? Why should we pay back this 15% amount ?