We are getting one item manufactured from a Vendor and then purchasing from them and doing packing work only before selling to our Customers.
The HSN which the Vendor is using attracts 12% GST however Vendor is charging 18% GST due to which we are also charging same rate from our Customer however due to this the end cost to Customer is higher by 6% .
Can we charge 12% GST by using the same HSN? Will it lead to any dispute?
Hi,
if the HSN of vendor attracts 12% and you are also issuing the same product with the same HSN to your customer then charge 12% on sale
Also for the difference of Input tax 18% and output tax 12% you can claim refund of ITC under inverted duty structure.
CAclubindia
