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Difference of. GST rate

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Surinder

Assistant

262 Points Posted on 15 October 2023

Respected Sir,

GST rate on item is 12% but by mistake supplier charge 18% same reflect in my 2B. so can I claim 12% and rest 6% reverse the ITC in same month or claim full 18%

please advise

Replies (4)

Quick Summary

This discussion addresses a common GST issue where a supplier incorrectly charges 18% GST instead of the applicable 12%. Advice is given on how to handle this discrepancy, including options to claim the full 18% ITC if the difference is paid to the vendor, or to claim only the actual 12% ITC and request a credit note from the supplier for the excess amount.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 15 October 2023

You can claim full 18% if you pay the full amount to your vendor

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 15 October 2023

Better to Claim actual rate of ITC...

Also request to supplier for correction of the invoice...

CA Amit Rathore

Chartered Accountant

99 Points Posted on 15 October 2023

If u want take full ITC then pay difference amount otherwise take actual itc and ask for credit note

Aashok Kumar Sharma

Finance/Compliance Consultant

75642 Points Posted on 08 November 2026

Supplier charged 18% instead of 12%:

• ITC is generally restricted to the tax legally payable. If the supplier charged 18% on an item correctly taxable at 12%, the excess 6% may not be "input tax" (the department's view). Ask the supplier to issue a credit note for the excess and correct it.

• If you claimed 18% ITC and the supplier paid 18% to the government, some argue there's no revenue loss, and ITC should be allowed. Outcomes vary.

• Safer: claim ITC at 12% (the correct rate), and seek refund or credit note of the excess from the supplier.