Matching, reversal and reclaim of input tax credit

The Meghalaya Goods and Services Tax Act, 2017

Tax201765 of 116 sections available18 chapters

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Chapter IX RETURNS

Statutory text

(1) The details of every inward supply furnished by a registered person (hereafter in this section referred to as the “recipient”) for a tax period shall, in such manner and within such time as may be prescribed, be matched—
- (a) with the corresponding details of outward supply furnished by the corresponding 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 Customs Tariff 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 in outward supplies that match with the corresponding details of outward supply furnished by the supplier 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 is in excess of the tax declared by the supplier for the same supply or the outward supply is not declared by the supplier in his valid return, the discrepancy shall be communicated to both such persons in such manner as may be prescribed.
(4) The duplication of claims of input tax credit shall be communicated to the recipient in such manner as may be prescribed.
(5) The amount in respect of which any discrepancy is communicated under sub-section (3) and which is not rectified by the supplier in his valid return for the month in which 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 in which the discrepancy is communicated.
(6) The amount in respect of any reduction in output tax liability that is not matched under section 43 or the equivalent amount in respect of claim of input tax credit in excess of that declared by the supplier and not rectified 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 in which the discrepancy is communicated.
(7) The recipient in whose output tax liability any amount has been added under sub-section (5) or sub-section (6), shall be liable to pay tax at such rate or as may be prescribed on the amount so added along with interest thereon, in such manner as may be prescribed.
(8) Any amount reduced under sub-section (5) or sub-section (6) shall be added to the output tax liability of the supplier in his return for the month in which such discrepancy is communicated.
(9) The recipient in whose output tax liability any amount has been added under sub-section (5) or sub-section (6) shall be entitled to reduce his output tax liability, in such manner as may be prescribed, by the corresponding amount if the supplier declares the details of the invoice or debit note in his valid return within the time specified in sub-section (9) of section 39.
(10) The amount in respect of any discrepancy communicated under sub-section (3) and under sub-section (4) which is not rectified by the supplier in his valid return for the month in which 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 in which the discrepancy is communicated.
(11) The amount in respect of any reduction in output tax liability that is not matched under section 43 or the equivalent amount in respect of claim of input tax credit in excess of that declared by the supplier and not rectified 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 in which the discrepancy is communicated.
(12) The supplier in whose output tax liability any amount has been added under sub-section (10) or sub-section (11), shall be liable to pay tax at such rate or as may be prescribed on the amount so added along with interest thereon, in such manner as may be prescribed.
(13) The recipient in whose output tax liability any amount has been added under sub-section (5) or sub-section (6) shall be entitled to reduce his output tax liability, in such manner as may be prescribed, by the corresponding amount if the supplier declares the details of the invoice or debit note in his valid return within the time specified in sub-section (9) of section 39.

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