Section 42 of CGST Act, 2017 Matching, reversal and reclaim of input tax credit.

Section 42 of CGST Act, 2017 Matching,reversal andreclaim ofinput taxcredit

Section 42 of CGST Act,2017 from bare act : (1) The details of every inward supply furnished by a registered person (hereafterin this section referred to as the recipient) for a tax period shall, in such manner and withinsuch time as may be prescribed, be matched

(a) with the corresponding details of outward supply furnished by thecorresponding registered person (hereafter in this section referred to as the supplier)in his valid return for the same tax period or any preceding tax period;

(b) with the integrated goods and services tax paid under section 3 of the CustomsTariff Act, 1975 in respect of goods imported by him; and

(c) for duplication of claims of input tax credit.

(2) The claim of input tax credit in respect of invoices or debit notes relating to inwardsupply that match with the details of corresponding outward supply or with the integratedgoods and services tax paid under section 3 of the Customs Tariff Act, 1975 in respect ofgoods imported by him shall be finally accepted and such acceptance shall be communicated,in such manner as may be prescribed, to the recipient. (3) Where the input tax credit claimed by a recipient in respect of an inward supply isin excess of the tax declared by the supplier for the same supply or the outward supply is notdeclared by the supplier in his valid returns, the discrepancy shall be communicated to bothsuch persons in such manner as may be prescribed. (4) The duplication of claims of input tax credit shall be communicated to the recipientin such manner as may be prescribed. (5) The amount in respect of which any discrepancy is communicated undersub-section (3) and which is not rectified by the supplier in his valid return for the month inwhich discrepancy is communicated shall be added to the output tax liability of the recipient,in such manner as may be prescribed, in his return for the month succeeding the month inwhich the discrepancy is communicated. (6) The amount claimed as input tax credit that is found to be in excess on account ofduplication of claims shall be added to the output tax liability of the recipient in his return forthe month in which the duplication is communicated. (7) The recipient shall be eligible to reduce, from his output tax liability, the amountadded under sub-section (5), if the supplier declares the details of the invoice or debit notein his valid return within the time specified in sub-section (9) of section 39. (8) A recipient in whose output tax liability any amount has been added undersub-section (5) or sub-section (6), shall be liable to pay interest at the rate specified undersub-section (1) of section 50 on the amount so added from the date of availing of credit tillthe corresponding additions are made under the said sub-sections. (9) Where any reduction in output tax liability is accepted under sub-section (7), theinterest paid under sub-section (8) shall be refunded to the recipient by crediting the amountin the corresponding head of his electronic cash ledger in such manner as may be prescribed: Provided that the amount of interest to be credited in any case shall not exceed theamount of interest paid by the supplier. (10) The amount reduced from the output tax liability in contravention of theprovisions of sub-section (7) shall be added to the output tax liability of the recipient in hisreturn for the month in which such contravention takes place and such recipient shall beliable to pay interest on the amount so added at the rate specified in sub-section (3) ofsection 50.

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CHAPTER IX

RETURNS

Chapter IX of the CGST Act,2017 covers twelve sections relating to RETURNSunder GST. All thesesections from the CGST Act,2017 are available for your ready reference. Section 37 :Furnishingdetails ofoutwardsupplies Section 38 :Furnishingdetails ofinwardsupplies Section 39 :Furnishing ofreturns Section 40 :First return Section 41 :Claim ofinput taxcredit andprovisionalacceptancethereof Section 42 :Matching,reversal andreclaim ofinput taxcredit Section 43 :Matching,reversal andreclaim ofreduction inoutput taxliability Section 44 :Annual return Section 45 :Final return Section 46 :Notice toreturndefaulters Section 47 :Levy of latefee Section 48 :Goods andservices taxpractitioners

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