Question: In case of misclassification of a non-customized product by supplier (either a manufacturer or wholesaler), will a retail trader still have to pay up the differential tax?
Answer: The lability to pay GST under section 9 is independent for every supplier irrespective of the compliance made by his vendor. Therefore, in case the manufacturer has adopted a wrong rate, the recipient who is the trader cannot commit the same mistake under the shelter that he has merely followed the rate as mentioned by the manufacturer. He will have to apply the correct rate and the value under section 9 on his own account.
