CHAPTER-9 RETURNS

INTRODUCTION

• Return is very important aspect of GST as all control over tax paid and input tax credit availed is on the basis of return filed by taxable person. Every registered person shall be required to file GST return in the form and frequency as prescribed under GST law.
• The returns are to be filed electronically through the common portal. There are separate returns for a tax payer registered under the composition scheme, tax payer registered as an Input service distributor, a person liable to deduct or collect tax.
• The provisions of Return are covered by Section 37 to Section 48 of Chapter VI of CGST Act 2017 read with Rule 59 to Rule 84 of CGST Rules 2017.

Section-37 Furnishing details of outward supplies

(1) Every registered person, other than an Input Service Distributor, a non-resident taxable person and a person paying tax under the provisions of section 10 or section 51 or section 52, shall furnish, electronically [subject to such conditions and restrictions and]^[2] in such form and manner as may be prescribed, the details of outward supplies of goods or services or both effected during a tax period on or before the tenth day of the month succeeding the said tax period and such details [shall, subject to such conditions and restrictions, within such time and in such manner as may be prescribed , be communicated to the recipient of the said supplies]^[3] :

[***]^[4]

[Provided that]^[5] the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein:

[Provided further that]^[6] any extension of time limit notified by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.

[***]^[7]

(3) Any registered person, who has furnished the details under sub-section (1) for any tax period [***]^[8] shall, upon discovery of any error or omission therein, rectify such error or omission in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period:

Provided that no rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after [the thirtieth day of November]^[9] following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier.

[Provided further that the rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after furnishing of the return under section 39 for the month of September, 2018 till the due date for furnishing the details under subsection (1) for the month of March, 2019 or for the quarter January, 2019 to March, 2019]^[1]

[(4) A registered person shall not be allowed to furnish the details of outward supplies under sub-section (1) for a tax period, if the details of outward supplies for any of the previous tax periods has not been furnished by him:

Provided that the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish the details of outward supplies under sub-section (1), even if he has not furnished the details of outward supplies for one or more previous tax periods.]^[10]

[(5) A registered person shall not be allowed to furnish the details of outward supplies under sub-section (1) for a tax period after the expiry of a period of three years from the due date of furnishing the said details:

Provided that the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish the details of outward supplies for a tax period under sub-section (1), even after the expiry of the said period of three years from the due date of furnishing the said details.]^[11]

Explanation.-For the purposes of this Chapter, the expression “details of outward supplies” shall include details of invoices, debit notes, credit notes and revised invoices issued in relation to outward supplies made during any tax period.

References for Amendments:

[1] Inserted vide Order No 02/2018-Central Tax dated 31.12.2018
[2] Inserted vide The Finance Bill, 2022 (No. 6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022. 
[3] Substituted for words “shall be communicated to the recipient of the said supplies within such time and in such manner as may be prescribed” vide The Finance Bill, 2022 (No. 6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.
[4] Omitted the first proviso vide The Finance Bill, 2022 (No. 6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022. Prior to its omission, it reads as “Provided that the registered person shall not be allowed to furnish the details of outward supplies during the period from the eleventh day to the fifteenth day of the month succeeding the tax period”.
[5] Substituted for words “Provided further that” vide The Finance Bill, 2022 (No. 6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.
[6] Substituted for words “Provided also that” vide The Finance Bill, 2022 (No. 6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.
[7] Omitted sub-section (2) vide The Finance Bill, 2022 (No. 6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022. Prior to its omission, it read as “(2) Every registered person who has been communicated the details under sub-section (3) of section 38 or the details pertaining to inward supplies of Input Service Distributor under sub-section (4) of section 38, shall either accept or reject the details so communicated, on or before the seventeenth day, but not before the fifteenth day, of the month succeeding the tax period and the details furnished by him under sub-section (1) shall stand amended accordingly.”
[8] Omitted words “and which have remained unmatched under section 42 or section 43” vide The Finance Bill, 2022 (No. 6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.
[9] Substituted for words “furnishing of the return under section 39 for the month of September” vide The Finance Bill, 2022 (No. 6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.
[10] Inserted vide The Finance Bill, 2022 (No. 6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.
[11] Inserted sub-section (5) vide The Finance Act, 2023 (No. 8 of 2023) dated 31.03.2023. Brought into force w.e.f. 01.10.2023, vide Notification No. 28/2023-Central Tax dated 31.07.2023.

Section-38 Communication of details of inward supplies and input tax credit

(1) The details of outward supplies furnished by the registered persons under sub-section (1) of section 37 and of such other supplies as may be prescribed , and [a statement]^[2] containing the details of input tax credit shall be made available electronically to the recipients of such supplies in such form and manner, within such time, and subject to such conditions and restrictions as may be prescribed .

(2) The [statement referred in]^[3] sub-section (1) shall consist of–

1. 1. details of inward supplies in respect of which credit of input tax may be available to the recipient; [***]^[4]
   2. details of supplies in respect of which such credit cannot be availed, whether wholly or partly, by the recipient [including]^[5], on account of the details of the said supplies being furnished under sub-section (1) of section 37,–

• • • by any registered person within such period of taking registration as as may be prescribed; or
    • by any registered person, who has defaulted in payment of tax and where such default has continued for such period as may be prescribed; or
    • by any registered person, the output tax payable by whom in accordance with the statement of outward supplies furnished by him under the said subsection during such period, as may be prescribed , exceeds the output tax paid by him during the said period by such limit as may be prescribed; or
    • by any registered person who, during such period as as may be prescribed , has availed credit of input tax of an amount that exceeds the credit that can be availed by him in accordance with clause (a), by such limit as may be prescribed; or
    • by any registered person, who has defaulted in discharging his tax liability in accordance with the provisions of sub-section (12) of section 49 subject to such conditions and restrictions as may be prescribed; or
    • by such other class of persons as may be prescribed.]^[1]

[(c) such other details as may be prescribed .]^[6]

Reference for Amendments:

[1] Substituted vide The Finance Act, 2022 (No. 6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022. Prior to its substitution it reads as under

3“Section 8. Furnishing details of inward supplies

(1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52, shall verify, validate, modify or delete, if required, the details relating to outward supplies and credit or debit notes communicated under sub-section (1) of section 37 to prepare the details of his inward supplies and credit or debit notes and may include therein, the details of inward supplies and credit or debit notes received by him in respect of such supplies that have not been declared by the supplier under sub-section (1) of section 37.

(2) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52, shall furnish, electronically, the details of inward supplies of taxable goods or services or both, including inward supplies of goods or services or both on which the tax is payable on reverse charge basis under this Act and inward supplies of goods or services or both taxable under the Integrated Goods and Services Tax Act or on which integrated goods and services tax is payable under section 3 of the Customs Tariff Act, 1975, and credit or debit notes received in respect of such supplies during a tax period after the tenth day but on or before the fifteenth day of the month succeeding the tax period in such form and manner as may be prescribed:

Provided that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein:

Provided further that any extension of time limit notified by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.

(3) The details of supplies modified, deleted or included by the recipient and furnished under sub-section (2) shall be communicated to the supplier concerned in such manner and within such time as may be prescribed.

(4) The details of supplies modified, deleted or included by the recipient in the return furnished under sub-section (2) or sub-section (4) of section 39 shall be communicated to the supplier concerned in such manner and within such time as may be prescribed.

(5) Any registered person, who has furnished the details under sub-section (2) for any tax period and which have remained unmatched under section 42 or section 43, shall, upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period:

Provided that no rectification of error or omission in respect of the details furnished under sub-section (2) shall be allowed after furnishing of the return under section 39 for the month of September following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier.”
[2] Substituted for words “an auto-generated statement” vide The Finance Act, 2025 (No. 7 of 2025) dated 29.03.2025 brought into force w.e.f. 01.10.2025 notified vide Notification No. 16/2025-Central Tax dated 17.09.2025.
[3] Substituted for words “auto-generated statement under” vide The Finance Act, 2025 (No. 7 of 2025) dated 29.03.2025 brought into force w.e.f. 01.10.2025 notified vide Notification No. 16/2025-Central Tax dated 17.09.2025.
[4] Omitted word “and” vide The Finance Act, 2025 (No. 7 of 2025) dated 29.03.2025 brought into force w.e.f. 01.10.2025 notified vide Notification No. 16/2025-Central Tax dated 17.09.2025.
[5] Inserted word “including” vide The Finance Act, 2025 (No. 7 of 2025) dated 29.03.2025 brought into force w.e.f. 01.10.2025 notified vide Notification No. 16/2025-Central Tax dated 17.09.2025.
[6] Inserted Clause (c) vide The Finance Act, 2025 (No. 7 of 2025) dated 29.03.2025 brought into force w.e.f. 01.10.2025 notified vide Notification No. 16/2025-Central Tax dated 17.09.2025.

Section-39 Furnishing of returns

[(1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, [within such time, and subject to such conditions and restrictions]^[12], as may be prescribed:

Provided that the Government may, on the recommendations of the Council, notify certain class of registered persons who shall furnish a return for every quarter or part thereof, subject to such conditions and restrictions as may be specified therein.

(2) A registered person paying tax under the provisions of section 10, shall, for each financial year or part thereof, furnish a return, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, tax paid and such other particulars in such form and manner, and within such time,as may be prescribed.^[1]

(3) [Every registered person required to deduct tax at source under section 51 shall electronically furnish a return for every calendar month of the deductions made during the month in such form and manner and within such time as may be prescribed:

Provided that the said registered person shall furnish a return for every calendar month whether or not any deductions have been made during the said month.]^[11]

(4) Every taxable person registered as an Input Service Distributor shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, within thirteen days after the end of such month.

(5) Every registered non-resident taxable person shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, within [thirteen]^[5] days after the end of a calendar month or within seven days after the last day of the period of registration specified under sub-section (1) of section 27, whichever is earlier.

(6) The Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the returns under this section for such class of registered persons as may be specified therein:

Provided that any extension of time limit notified by the Commissioner of State tax or Union territory tax shall be deemed to be notified by the Commissioner.

[(7) Every registered person who is required to furnish a return under sub-section (1), other than the person referred to in the proviso thereto, or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return:

[Provided that every registered person furnishing return under the proviso to sub-section (1) shall pay to the Government, in such form and manner, and within such time, as may be prescribed–

• • an amount equal to the tax due taking into account inward and outward supplies of goods or services or both, input tax credit availed, tax payable and such other particulars during a month; or
  • in lieu of the amount referred to in clause (a), an amount determined in such manner and subject to such conditions and restrictions as may be prescribed .];^[6]

Provided further that every registered person furnishing return under sub-section (2) shall pay to the Government, the tax due taking into account turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, and such other particulars during a quarter, in such form and manner, and within such time, as may be prescribed]^[2]

(8) Every registered person who is required to furnish a return under sub-section (1) or sub-section (2) shall furnish a return for every tax period whether or not any supplies of goods or services or both have been made during such tax period.

(9) [Where]^[7] any registered person after furnishing a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (4) or sub-section (5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars [in such form and manner as may be prescribed]^[3], subject to payment of interest under this Act:

Provided that no such rectification of any omission or incorrect particulars shall be allowed after [the thirtieth day of November]^[8] following [the end of the financial year to which such details pertain]^[4], or the actual date of furnishing of relevant annual return, whichever is earlier.

(10) A registered person shall not be allowed to furnish a return for a tax period if the return for any of the previous tax periods [or the details of outward supplies under sub-section (1) of section 37 for the said tax period has not been furnished by him:

Provided that the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish the return, even if he has not furnished the returns for one or more previous tax periods or has not furnished the details of outward supplies under sub-section (1) of section 37 for the said tax period.]^[9]

[(11) A registered person shall not be allowed to furnish a return for a tax period after the expiry of a period of three years from the due date of furnishing the said return:

Provided that the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish the return for a tax period, even after the expiry of the said period of three years from the due date of furnishing the said return.]^[10]

References for Amendments:

[1] Substituted vide The Finance (No. 2) Act, 2019 (No. 23 of 2019) brought into force w.e.f. 10th November, 2020. for “(1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, and within such time, as may be prescribed, on or before the twentieth day of the month succeeding such calendar month or part thereof.
(2) A registered person paying tax under the provisions of section 10 shall, for each quarter or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable and tax paid within eighteen days after the end of such quarter.”
[2] Substituted vide The Finance (No. 2) Act, 2019 (No. 23 of 2019) brought into force w.e.f. 10th November, 2020 for “(7) Every registered person, who is required to furnish a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return.”
[3] Substitute for “in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed” by the Central Goods and Services Tax (Amendment) Act 2018 (No. 31 of 2018) Applicability yet to be notified.
[4] Substitute for “the end of the financial year” by  the Central Goods and Services Tax (Amendment) Act 2018 (No. 31 of 2018)  Applicability yet to be notified.
[5] Substituted for word “twenty” vide The Finance Act, 2022 (No.6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.
[6] Substituted the first proviso vide The Finance Act, 2022 (No.6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022. Prior to its substitution, it reads as under
“Provided that every registered person furnishing return under the proviso to sub-section (1) shall pay to the Government, the tax due taking into account inward and outward supplies of goods or services or both, input tax credit availed, tax payable and such other particulars during a month, in such form and manner, and within such time, as may be prescribed.”
[7] Substituted for words “Subject to the provisions of sections 37 and 38, if ” vide The Finance Act, 2022 (No.6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.
[8] Substituted for words “the due date for furnishing of return for the month of September or second quarter” vide The Finance Act, 2022 (No.6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.
[9] Substituted for words “has not been furnished by him” vide The Finance Act, 2022 (No.6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.
[10] Inserted sub-section (11) vide The Finance Act, 2023 (No.8 of 2023) dated 31.03.2023. Brought into force w.e.f. 01.10.2023, vide Notification No. 28/2023-Central Tax dated 31.07.2023.
[11] Substituted vide The Finance (No.2) Act, 2024 (No. 15 of 2024) dated 16.08.2024, to be bought in w.e.f. 01.11.2024 Notification No. 17/2024-Central Tax dated 27.09.2024. Prior to its substitution, it reads as under:
“Every registered person required to deduct tax at source under the provisions of section 51 shall furnish, in such form and manner as may be prescribed, a return, electronically, for the month in which such deductions have been made within ten days after the end of such month.”
[12] Substituted for words “and within such time” vide The Finance Act, 2025 (No. 7 of 2025) dated 29.03.2025 brought into force w.e.f. 01.10.2025 notified vide Notification No. 16/2025-Central Tax dated 17.09.2025.

Section-40 First Return

Every registered person who has made outward supplies in the period between the date on which he became liable to registration till the date on which registration has been granted shall declare the same in the first return furnished by him after grant of registration.

Section-41 Availment of input tax credit

(1) Every registered person shall, subject to such conditions and restrictions as may be prescribed , be entitled to avail the credit of eligible input tax, as self-assessed, in his return and such amount shall be credited to his electronic credit ledger.

(2) The credit of input tax availed by a registered person under sub-section (1) in respect of such supplies of goods or services or both, the tax payable whereon has not been paid by the supplier, shall be reversed along with applicable interest, by the said person in such manner
as may be prescribed :

Provided that where the said supplier makes payment of the tax payable in respect of the aforesaid supplies, the said registered person may re-avail the amount of credit reversed by him in such manner as may be prescribed .]^[1]

Reference for Amendments:

[1] Substituted vide The Finance Act, 2022 (No. 6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022- Central Tax dated 28.09.2022. Prior to its substitution it reads as under

“Section 41. Claim of input tax credit and provisional acceptance thereof.

(1) Every registered person shall, subject to such conditions and restrictions as may be prescribed, be entitled to take the credit of eligible input tax, as self-assessed, in his return and such amount shall be credited on a provisional basis to his electronic credit ledger.

(2) The credit referred to in sub-section (1) shall be utilised only for payment of self- assessed output tax as per the return referred to in the said sub-section.’’

Section 42. [***].^[1]

Reference for Amendments:

[1] Omitted vide The Finance Act, 2022 (No.6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022 – Central Tax dated 28.09.2022. Prior to its omission it reads as under 

Section 42. “Matching, reversal and reclaim of input tax credit.

(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-

• • 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;
  • 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
  • for duplication of claims of input tax credit.

(2) The claim of input tax credit in respect of invoices or debit notes relating to inward supply that match with the details of corresponding outward supply or with the integrated goods and services tax paid under section 3 of the Customs Tariff Act, 1975 in respect of goods 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 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 returns, 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 claimed as input tax credit that is found to be in excess on account of duplication of claims shall be added to the output tax liability of the recipient in his return for the month in which the duplication is communicated.

(7) The recipient shall be eligible to reduce, from his output tax liability, the amount added under sub-section (5), 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.

(8) A recipient in whose output tax liability any amount has been added under sub-section (5) or sub-section (6), shall be liable to pay interest at the rate specified under sub-section (1) of section 50 on the amount so added from the date of availing of credit till the corresponding additions are made under the said sub-sections.

(9) Where any reduction in output tax liability is accepted under sub-section (7), the interest paid under sub-section (8) shall be refunded to the recipient by crediting the amount in 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 the amount of interest paid by the supplier.

(10) The amount reduced from the output tax liability in contravention of the provisions of sub-section (7) shall be added to the output tax liability of the recipient in his return for the month in which such contravention takes place and such recipient shall be liable to pay interest on the amount so added at the rate specified in sub-section (3) of section 50.”

Section-43 [***]^[1] 

Reference for Amendments:

[1] Omitted vide The Finance Act, 2022 (No.6 of 2022) dated 30.03.2022. brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022 – Central Tax dated 28.09.2022. Prior to its omission, it reads as under
Section 43. “Matching, reversal and reclaim of reduction in output tax liability. –

(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-

• • 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
  • 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 returns, 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 found to be on account of duplication of claims shall be added to the output tax liability of the supplier in his return for the month in which such duplication is communicated.

(7) The supplier shall be eligible to reduce, from his output tax liability, the amount added under sub-section (5) 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.

(8) A supplier in whose output tax liability any amount has been added under sub-section (5) or sub-section (6), shall be liable to pay interest at the rate specified under sub-section (1) of section 50 in respect of the amount so added from the date of such claim for reduction in the output tax liability till the corresponding additions are made under the said sub-sections.

(9) Where any reduction in output tax liability is accepted under sub-section (7), the interest paid under sub-section (8) shall be refunded to the supplier by crediting the amount in 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 the amount of interest paid by the recipient.

(10) The amount reduced from output tax liability in contravention of the provisions of sub-section (7) shall be added to the output tax liability of the supplier in his return for the month in which such contravention takes place and such supplier shall be liable to pay interest on the amount so added at the rate specified in sub-section (3) of section 50.”

Section 43A. [***]^[1]

Reference for Amendments:

[1] Omitted vide The Finance Act, 2022 (No. 6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022- Central Tax dated 28.09.2022. Prior to its omission, it reads as under

” Section 43A. Procedure for furnishing return and availing input tax credit

(1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the suppliers.

(2) Notwithstanding anything contained in section 41, section 42 or section 43, the procedure for availing of input tax credit by the recipient and verification thereof shall be such as may be prescribed.

(3) The procedure for furnishing the details of outward supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such as may be prescribed.

(4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-section (3) shall be such as may be prescribed and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent of the input tax credit available, on the basis of details furnished by the suppliers under the said sub-section.

(5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act.

(6) The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to outward supplies for which the details have been furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished.

(7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for non-recovery of an amount of tax or input tax credit wrongly availed not exceeding one thousand rupees.

(8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section (3) by a registered person,-

• • within six months of taking registration;
  • who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such defaulted amount, shall be such as may be prescribed.”

Section-44 Annual return

[1]^[2] Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person shall furnish an annual return which may include a self-certified reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial statement for every financial year electronically, within such time and in such form and in such manner as may be prescribed

Provided that the Commissioner may, on the recommendations of the Council, by notification, exempt any class of registered persons from filing annual return under this section:

Provided further that nothing contained in this section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.]^[1]

[(2) A registered person shall not be allowed to furnish an annual return under sub-section (1) for a financial year after the expiry of a period of three years from the due date of furnishing the said annual return:

Provided that the Government may, on the recommendations of the Council, by notification, and subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish an annual return for a financial year under sub-section (1), even after the expiry of the said period of three years from the due date of furnishing the said annual return.]^[3]

Reference for Amendments:

[1]  Substituted by the Finance Act, 2021 dated 28.03.2021 w.e.f. 01.08.2021. Earlier section 44 was read as under-
(1) Every registered person, other than an Input Service Distributor, a person paying tax under 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year  electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year.
Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual return for such class of registered persons as may be specified therein:
Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner. ]
(2) Every registered person who is required to get his accounts audited in accordance with the provisions of sub-section (5) of section 35 shall furnish, electronically, the annual return under sub-section (1) along with a copy of the audited annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and such other particulars as may be prescribed.
[Explanation.- For the purposes of this section, it is hereby declared that the annual return for the period from the 1st July, 2017 to the 31st March, 2018 shall be furnished on or before the 31st December, 2019 and the annual return for the period from the 1st April, 2018 to the 31st March, 2019 shall be furnished on or before the 31st March, 2020.]
(Prior to the said substitution, section 44 was earlier amended by the Finance (No. 2) Act, 2019, w.e.f. 1.1.2020, the CGST (Tenth Removal of Difficulties) Order, 2019 w.e.f. 26.12.2019 and the CGST ( Eighth Removal of Difficulties) Order, 2019, w.e.f. 14.11.2019)

[2] Renumbered videThe Finance Act, 2023 (No. 8 of 2023) dated 31.03.2023. Brought into force w.e.f. 01.10.2023, vide Notification No. 28/2023-Central Tax dated 31.07.2023.
[3] Inserted sub-section (2) vide The Finance Act, 2023 (No. 8 of 2023) dated 31.03.2023. Brought into force w.e.f. 01.10.2023, vide Notification No. 28/2023-Central Tax dated 31.07.2023.

Section-45 Final return

Every registered person who is required to furnish a return under sub-section (1) of section 39 and whose registration has been cancelled shall furnish a final return within three months of the date of cancellation or date of order of cancellation, whichever is later, in such form and manner as may be prescribed

Section-46 Notice to return defaulters

Where a registered person fails to furnish a return under section 39 or section 44 or section 45, a notice shall be issued requiring him to furnish such return within fifteen days in such form and manner as may be prescribed.

Section-47 Levy of late fee

(1) Any registered person who fails to furnish the details of outward [***]^[1] supplies required under section 37 [***]^[2] or returns required under section 39 or section 45 [or section 52]^[3] by the due date shall pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum amount of five thousand rupees.

(2) Any registered person who fails to furnish the return required under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter per cent of his turnover in the State or Union territory.

Reference for Amendments:

[1] Omitted words “or inward” vide The Finance Act, 2022 (No.6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.
[2] Omitted words “or section 38″ vide The Finance Act, 2022 (No.6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.
[3] Inserted vide The Finance Act, 2022 (No.6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.

Section-48 Goods and services tax practitioners

(1) The manner of approval of goods and services tax practitioners, their eligibility conditions, duties and obligations, manner of removal and other conditions relevant for their functioning shall be such as may be prescribed.

(2) A registered person may authorise an approved goods and services tax practitioner to furnish the details of outward supplies under section 37, [***]^[2] and the return under section 39 or section 44 or section 45 [and to perform such other functions]^[1] in such manner as may be prescribed.

(3) Notwithstanding anything contained in sub-section (2), the responsibility for correctness of any particulars furnished in the return or other details filed by the goods and services tax practitioners shall continue to rest with the registered person on whose behalf such return and details are furnished.

Reference for Amendments:

[1] Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) brought into force w.e.f. 01.02.2019.
[2] Omitted words ” the details of inward supplies under section 38″ vide The Finance Act, 2022 (No.6 of 2022) dated 30.03.2022, brought into force w.e.f. 01.10.2022 vide Notification No. 18/2022-Central Tax dated 28.09.2022.