Section 42 – Matching, reversal and reclaim of input tax credit of CGST ACT, 2017<\/p>\n
42. (1) The details of every inward supply furnished by a registered person (hereafter
\nin this section referred to as the \u201crecipient\u201d) for a tax period shall, in such manner and within
\nsuch time as may be prescribed, be matched\u2013\u2013
\n(a) with the corresponding details of outward supply furnished by the
\ncorresponding registered person (hereafter in this section referred to as the \u201csupplier\u201d)
\nin his valid return for the same tax period or any preceding tax period;
\n(b) with the integrated goods and services tax paid under section 3 of the Customs
\nTariff Act, 1975 in respect of goods imported by him; and
\n(c) for duplication of claims of input tax credit.
\n(2) The claim of input tax credit in respect of invoices or debit notes relating to inward
\nsupply that match with the details of corresponding outward supply or with the integrated
\ngoods and services tax paid under section 3 of the Customs Tariff Act, 1975 in respect of
\ngoods imported by him shall be finally accepted and such acceptance shall be communicated,
\nin such manner as may be prescribed, to the recipient.
\n(3) Where the input tax credit claimed by a recipient in respect of an inward supply is
\nin excess of the tax declared by the supplier for the same supply or the outward supply is not
\ndeclared by the supplier in his valid returns, the discrepancy shall be communicated to both
\nsuch persons in such manner as may be prescribed.
\n(4) The duplication of claims of input tax credit shall be communicated to the recipient
\nin such manner as may be prescribed.
\n(5) The amount in respect of which any discrepancy is communicated under
\nsub-section (3) and which is not rectified by the supplier in his valid return for the month in
\nwhich discrepancy is communicated shall be added to the output tax liability of the recipient,
\nin such manner as may be prescribed, in his return for the month succeeding the month in
\nwhich the discrepancy is communicated.
\n(6) The amount claimed as input tax credit that is found to be in excess on account of
\nduplication of claims shall be added to the output tax liability of the recipient in his return for
\nthe month in which the duplication is communicated.
\n(7) The recipient shall be eligible to reduce, from his output tax liability, the amount
\nadded under sub-section (5), if the supplier declares the details of the invoice or debit note
\nin his valid return within the time specified in sub-section (9) of section 39.
\n(8) A recipient in whose output tax liability any amount has been added under
\nsub-section (5) or sub-section (6), shall be liable to pay interest at the rate specified under
\nsub-section (1) of section 50 on the amount so added from the date of availing of credit till
\nthe corresponding additions are made under the said sub-sections.
\n(9) Where any reduction in output tax liability is accepted under sub-section (7), the
\ninterest paid under sub-section (8) shall be refunded to the recipient by crediting the amount
\nin the corresponding head of his electronic cash ledger in such manner as may be prescribed:<\/p>\n
Provided that the amount of interest to be credited in any case shall not exceed the
\namount of interest paid by the supplier.
\n(10) The amount reduced from the output tax liability in contravention of the
\nprovisions of sub-section (7) shall be added to the output tax liability of the recipient in his
\nreturn for the month in which such contravention takes place and such recipient shall be
\nliable to pay interest on the amount so added at the rate specified in sub-section (3) of
\nsection 50.<\/p>\n","protected":false},"excerpt":{"rendered":"
Section 42 – Matching, reversal and reclaim of input tax credit of CGST ACT, 2017 42. (1) The details of every inward supply furnished by a registered person (hereafter in this section referred to as the \u201crecipient\u201d) for a tax period shall, in such manner and within such time as may be prescribed, be matched\u2013\u2013 … Continue reading “Section 42 – Matching, reversal and reclaim of input tax credit of CGST ACT, 2017”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"_links":{"self":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/209"}],"collection":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/comments?post=209"}],"version-history":[{"count":1,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/209\/revisions"}],"predecessor-version":[{"id":210,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/209\/revisions\/210"}],"wp:attachment":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/media?parent=209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/categories?post=209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/tags?post=209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}