Matching, reversal and reclaim of reduction in output tax liability

The Meghalaya Goods and Services Tax Act, 2017

Tax201765 of 116 sections available18 chapters

Read full ActSections

Chapter IX RETURNS

Statutory text

(1) The details of every credit note relating to outward supply furnished by a registered 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 the corresponding 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 the corresponding reduction in the claim for input tax credit by the recipient shall be finally accepted 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 exceeds the corresponding reduction in the claim for input tax credit or the corresponding credit note is not declared by the recipient 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 for reduction in output tax liability shall be communicated to the supplier 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 recipient 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.
(6) The amount in respect of any reduction in output tax liability that is not matched under sub-section (2) and the corresponding credit reduction is not matched under sub-section (3) 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.
(7) The supplier 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 recipient in his return for the month in which such discrepancy is communicated.
(9) The supplier 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 recipient declares the details of the credit 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 recipient 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.
(11) The amount in respect of any reduction in output tax liability that is not matched under sub-section (2) of section 43 and the corresponding credit reduction is not matched under sub-section (3) of section 43 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 recipient 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 supplier 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 recipient declares the details of the credit note in his valid return within the time specified in sub-section (9) of section 39.

Study data processing for this section.

Some statutory text is still being prepared for this language version.

PDF: pending for this language.