ITC reversal due to party charges 28 GST instead of 18

We received notice from the GST officer indicating that one of our creditors charged 28% GST on the bill instead of 18%, and we claimed a 28% Input Tax Credit (ITC) as it was the same as mentioned on the invoice and reflected in GSTR-2A. The payment was also made within 180 days. However, the officer now says that we are eligible for only an 18% GST ITC credit and that we need to reverse the 10% ITC credit with interest. Should we reverse the ITC or not ?
Replies (3)
Quick Summary
A business received a GST notice for claiming 28% Input Tax Credit (ITC) when their creditor only charged 18% GST. Despite the invoice and GSTR-2A reflecting 28%, the officer insists on an 18% ITC, requiring a reversal of the 10% difference with interest. The discussion explores whether to reverse the ITC, seek a credit note from the vendor, or if interest is payable if the ITC wasn't utilised.

Reverse the ITC with interest
Ask for credit note from vendor for excess GST charged and if itc was not utilised against output, no need to pay interest
Discuss with your creditor once for clarity.

You may reverse it through current month GSTR-3B

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