What will happen if I charge the wrong GST rate to a customer?
If there is a short levy and your jurisdictional officer finds the same he will ask you to pay the difference and interest (if any) and may levy some penalty.
If the rate charged is more than the prescribed rate and you have deposited the amount correctly (the amount collected is deposited) there will not be an issue as you have paid the liability.
If the issue is identified by you before any notice, you can raise the supplementary invoice, Debit/ Credit note as applicable to the customer and report the same in GST Return.
If you charged GST less or more then immediately you have to make supplementary invoice on a particular transaction. In the instant case imagine assessed paid shortfall, If authority will come to know thereon authority will issue the “Show Cause Notice” and within 30 days from the receipt of the SCN assesse has to give a proper reply to the authority and further they will fix the date for personal hearing regarding the Tax shortfall amount. If the case is turned up then our star value has come down.
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