Section 43 of CGST Act, 2017 – Matching, reversal and reclaim of reduction in output tax liability

Section 43 of CGST Act,2017 from bare act :
(1) The details of every credit note relating to outward supply furnished by aregistered person (hereafter in this section referred to as the supplier) for a tax period shall,in such manner and within such time as may be prescribed, be matched

(a) with the corresponding reduction in the claim for input tax credit by thecorresponding registered person (hereafter in this section referred to as the recipient)in his valid return for the same tax period or any subsequent tax period; and

(b) for duplication of claims for reduction in output tax liability.

(2) The claim for reduction in output tax liability by the supplier that matches with thecorresponding reduction in the claim for input tax credit by the recipient shall be finallyaccepted and communicated, in such manner as may be prescribed, to the supplier.
(3) Where the reduction of output tax liability in respect of outward supplies exceedsthe corresponding reduction in the claim for input tax credit or the corresponding credit noteis not declared by the recipient in his valid returns, the discrepancy shall be communicatedto both such persons in such manner as may be prescribed.
(4) The duplication of claims for reduction in output tax liability shall be communicatedto the supplier in 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 recipient in his valid return for the month inwhich discrepancy is communicated shall be added to the output tax liability of the supplier,in such manner as may be prescribed, in his return for the month succeeding the month inwhich the discrepancy is communicated.
(6) The amount in respect of any reduction in output tax liability that is found to be onaccount of duplication of claims shall be added to the output tax liability of the supplier in hisreturn for the month in which such duplication is communicated.
(7) The supplier shall be eligible to reduce, from his output tax liability, the amountadded under sub-section (5) if the recipient declares the details of the credit note in his validreturn within the time specified in sub-section (9) of section 39.
(8) A supplier 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 in respect of the amount so added from the date of such claimfor reduction in the output tax liability till the corresponding additions are made under thesaid 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 supplier 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 recipient.
(10) The amount reduced from output tax liability in contravention of the provisions ofsubsection(7) shall be added to the output tax liability of the supplier in his return for themonth in which such contravention takes place and such supplier shall be liable to payinterest on the amount so added at the rate specified in sub-section (3) of section 50.

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