Question

If dealer does import of goods which is chargeable GST @ 12% but the custom department charged duty with GST @ 18% (HSN is same) than my question is :-
1. Should dealer sale the same material on GST @ 12% or 18%?
2. Can dealer demand for GST refund in this case, if yes than how he can demand for refund?

Answer

Every supplier is himself responsible for correct classification of goods and payment of tax at correct rate. Therefore, on sale of goods GST is charged at the rate applicable on goods as per their classification i.e. 12% irrespective of the fact that Customs Department has charged different rate i.e. 18% instead of 12%.

For the excess tax paid you may apply for refund from Custom Department under section 27 of Customs Act 1962. (Reply dt.13/10/2018)