Chapter 9

Section 37 – Furnishing details of outward supplies

• Who: Every registered person (except ISD, non-resident, and persons under sections 10, 51, 52).
• When: By 10th of the month following the tax period.
• What: Details of outward supplies (invoices, debit/credit notes, revised invoices).
• Rectification: Errors can be corrected in subsequent returns, with payment of tax & interest.
• Deadline for rectification: No later than 30th November following the financial year or filing of annual return.
• Restriction: Cannot file for current period if previous periods’ details not furnished, unless exempted by Govt.

 

Section 38 – Communication of inward supplies and ITC

• Auto-generated statement of inward supplies and input tax credit (ITC) sent to recipients.
• Recipient can verify, modify, include, or delete details to prepare inward supply statement.
• Filing window: 11th–15th day of month following the tax period.
• Unmatched credits: If supplier’s details do not match, discrepancies communicated; recipient may adjust output tax liability.

 

Section 39 – Furnishing of returns

• Monthly return: Registered persons (except ISD, non-resident, sections 10, 51, 52) file monthly return electronically for inward/outward supplies, ITC, tax payable & paid.
• Quarterly return: Specified classes notified by Govt.
• Non-resident / ISD / TDS deductors: File within prescribed days after month-end.
• Rectification of errors: Allowed in subsequent returns; interest payable if tax short-paid.
• Restriction: Cannot file if previous period returns or Section 37 details not filed, unless notified.

 

Section 40 – First return

• Supplies made between liability and registration date declared in first return after registration.

 

Section 41 – Availment of input tax credit (ITC)

• Eligible ITC can be self-assessed and credited to electronic ledger.
• Reversal of ITC: If supplier hasn’t paid tax; re-claimable once supplier pays.

 

Section 42 – Matching, reversal, and reclaim of ITC

• Recipient’s inward supply matched with supplier’s outward supply.
• Excess/mismatched claims: Discrepancy communicated; excess added to output liability with interest.
• Reconciliation: Adjustments allowed if supplier corrects details in time.

 

Section 43 – Matching, reversal, and reclaim of reduction in output tax

• Similar process as Section 42, but for credit notes reducing output tax liability.
• Discrepancies communicated to both supplier & recipient; excess reduction added back to output tax liability with interest.

 

Section 43A – Procedure for returns and ITC

• Specifies procedure for furnishing outward supply details, verifying ITC, and thresholds for availing ITC where supplier details not available.
• Joint liability: Supplier & recipient responsible if returns/details not furnished properly.

 

Section 44 – Annual return

• Who: All registered persons (except ISD, TDS/TCS payers, casual/non-resident taxable persons).
• What: Annual return reconciles returns filed during year with audited financial statements.
• Deadline: 31st December following the financial year (subject to extension).
• Audit requirement: Return includes audited accounts & reconciliation statement if audit required.

 

Section 45 – Final return

• Registered person whose registration is cancelled must file final return within 3 months of cancellation or order date.

 

Section 46 – Notice to defaulters

• If return not filed under Sections 39, 44, 45 → notice issued, 15-day deadline to comply.

 

Section 47 – Levy of late fee

• Details/returns late: ₹100/day (max ₹5,000) for outward/other returns.
• Annual return late:25% of turnover per day (max as per law).

 

Section 48 – GST Practitioners

• Approval & eligibility
• Practitioner may file returns & details on behalf of registered person.
• Responsibility: Registered person remains liable for correctness of data filed.