Section 38 of CGST Act

Communication of Details of inward supplies and the input tax credit

 

Enforced w.e.f. 1-7-2017.

 

Section 38(1)

 

The details of outward supplies furnished by the registered persons

under sub-section (1) of section 37 and of such other supplies as may be prescribed, and an autogenerated statement containing the details of input tax credit shall be made available electronically to the recipients of such supplies in such form and manner, within such time, and subject to such conditions and restrictions as may be prescribed.

 

Section 38(2)

 

The auto-generated statement under sub-section (1) shall consist of-

(a) details of inward supplies in respect of which credit of input tax may

be available to the recipient; and

(b) details of supplies in respect of which such credit cannot be availed, whether wholly or partly, by the recipient, on account of the details of the said supplies being furnished under sub-section (1) of section 37-

(i) by any registered person within such period of taking registration as may be prescribed; or

(ii) by any registered person, who has defaulted in payment of tax and where such default has continued for such period as may be prescribed; or

(iii) by any registered person, the output tax payable by whom in accordance with the statement of outward supplies furnished by him under the said sub-section during such period, as may be prescribed, exceeds the output tax paid by him during the said period by such limit as may be prescribed; or

(iv) by any registered person who, during such period as may be prescribed, has availed credit of input tax of an amount that exceeds the credit that can be availed by him in accordance with clause (a), by such limit as may be prescribed; or

(v) by any registered person, who has defaulted in discharging his tax liability in accordance with the provisions of sub- section (12) of section 49 subject to such conditions and restrictions as may be prescribed; or

(vi) by such other class of persons as may be prescribed.

 

Substituted by the Finance Act, 2022, w.e.f. 1-10-2022.

Prior to its substitution, section 38 read as under:

Furnishing Details of Inward Supplies

 

Section 38(1)

 

Every registered person,

other than an Input Service Distributor or

a non-resident taxable person or

a person paying tax under the provisions of section 10 or section 51 or section 52,

shall verify, validate, modify or delete, if required,

the details relating to outward supplies and credit or debit notes communicated

under sub-section (1) of section 37 to prepare

the details of his inward supplies and credit or debit notes and may include therein,

the details of inward supplies and credit or debit notes received by him

in respect of such supplies that have not been declared by the supplier under sub-section (1) of section 37.

 

Section 38(2)

 

Every registered person,

other than an Input Service Distributor or

a non-resident taxable person or

a person paying tax under the provisions of section 10 or section 51 or section 52,

shall furnish, electronically,

the details of inward supplies of taxable goods or services or both,

including inward supplies of goods or services or both

on which the tax is payable on reverse charge basis under this Act and

inward supplies of goods or services or both taxable under the Integrated Goods and Services Tax Act or

on which integrated goods and services tax is payable under section 3 of the Customs Tariff Act, 1975,

and credit or debit notes received in respect of such supplies

during a tax period after the tenth day

but on or before the fifteenth day of the month succeeding the tax period

in such form and manner as may be prescribed:

 

Provided that the Commissioner may,

for reasons to be recorded in writing, by notification,

extend the time limit for furnishing such details

for such class of taxable persons as may be specified therein:

 

Provided further that any extension of time limit

notified by the Commissioner of State tax or Commissioner of Union territory tax

shall be deemed to be notified by the Commissioner.

 

Section 38(3)

 

The details of supplies modified, deleted or included

by the recipient and furnished under sub-section (2)

shall be communicated to the supplier

concerned in such manner and within such time as may be prescribed.

 

Section 38(4)

 

The details of supplies modified, deleted or included

by the recipient in the return furnished under sub-section (2) or sub-section (4) of section 39 shall

be communicated to the supplier concerned in such manner and within such time as may be prescribed.

 

Section 38(5)

 

Any registered person, who has furnished the details under sub-section (2) for any tax period

and which have remained unmatched under section 42 or section 43, shall,

upon discovery of any error or omission therein,

rectify such error or omission in the tax period

during which such error or omission is noticed in such manner as may be prescribed,

and shall pay the tax and interest, if any,

in case there is a short payment of tax on account of such error or omission,

in the return to be furnished for such tax period:

 

Provided that no rectification of error or omission

in respect of the details furnished under sub-section (2)

shall be allowed after furnishing of the return under section 39

for the month of September following the end of the financial year to which such details pertain,

or furnishing of the relevant annual return,

whichever is earlier.