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Section 38 – Furnishing details of inward supplies under CGST Act 2017

Detail analysis of notified Rules and the provisions of Section 38 (Furnishing details of inward supplies) of the Central Goods and Services Tax (CGST) Act, 2017.

Chapter IX (Sections 37-48) of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions related to Accounts and Records. Section 38 of Central Goods and Services Tax Act, 2017 (12 of 2017) provides for furnishing details of inward supplies under CGST Act 2017.Chapter IX (Sections 37-48) of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions related to Accounts and Records. Section 38 of Central Goods and Services Tax Act, 2017 (12 of 2017) provides for furnishing details of inward supplies under CGST Act 2017.

Recently, we have discussed in detail section 37 (i.e. Furnishing details of outward supplies) of CGST Act 2017. Today, we learn the provisions of section 38 of the CGST Act 2017. Complete Details of CGST Section 38 – Furnishing details of inward supplies. You may CLICK HERE to download list of all sections of CGST Act 2017 in PDF format.

The Commissioner vide Notification No. 30/2017–Central Tax, G.S.R. 1144(E) dated 11-09-2017 has extended the time limit for furnishing Goods and Services Tax Return (GSTR) – 2 under sub-section (2) of section 38 of CGST Act 2017 for the month of July 2017 for all class of taxable persons or registered persons to 31st October, 2017.

Notes on Section 38 of CGST Act 2017

Section 38 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017 – Central Tax, G.S.R. 658(E), dated 28.06.2017. In this note, you will learn detail of the provisions of section 38 of CGST Act 2017 read with Central GST Rules 2017.

Modify Outward Supplies Details:

According to the provisions of section 38(1) of CGST Act 2017, every registered person shall verify, validate, modify or delete, the details relating to outward supplies as filed in GSTR-1.

This facility is allowed to taxpayer so that he shall prepare the details of his inward supplies and credit/debit notes including the details received by him in respect of such supplies that have not been declared by the supplier u/s 37(1).

However, the following person shall not allowed for verifying, validating, modifying or deleting the details relating to outward supplies communicated under sub-section (1) of section 37 of CGST Act 2017:

  1. Input Service Distributor (ISD);
  2. Non-resident taxable person;
  3. A person paying tax u/s 10 or 51 or 52.

The 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.

Furnish Inward Supplies Details:

In compliance with the provisions of section 38(2) of CGST Act 2017, every registered person shall furnish GSTR-2 electronically for the details of inward supplies of taxable goods or services or both, including inward supplies on which the tax is payable on reverse charge basis under CGST Act and IGST Act or on which IGST 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 10th day but on or before the 15th day of the month succeeding the tax period in such form and manner as may be prescribed.

Details of inward supplies received shall be filed electronically in GSTR-2 by the taxpayer. The details of inward supplies of goods or services or both furnished in FORM GSTR-2 shall include the –

(a) invoice wise details of all inter-State and intra-State supplies received from registered persons or unregistered persons;
(b) import of goods and services made; and
(c) debit and credit notes, if any, received from supplier.

At the time of filing GSTR-2, you are required to provide the following details:

  • 3,4A – Inward supplies received from Registered person including reverse charge supplies
  • 4B – Inward supplies from an unregistered supplier
  • 4C – Import of service
  • 5 – Import of Inputs/Capital goods and Supplies received from SEZ
  • 6C – Debit/Credit Notes for supplies from registered person
  • 6C – Debit Notes/Credit Notes for Unregistered Supplier
  • 7 – Supplies from composition taxable person and other exempt/nil rated/non GST supplies
  • 10A – Advance amount paid for reverse charge supplies
  • 10B – Adjustment of advance amount paid earlier for reverse charge supplies
  • 13 – HSN summary of inward supplies
  • 11 – Input Tax Credit Reversal/Reclaim

Extension of Time Limit to file GSTR-2:

The time limit for furnishing above details may be extended for specified class of taxable persons by the Commissioner or the Commissioner of State tax or Commissioner of Union territory tax. The Commissioner specified in sub-section (2) of section 38 shall mean a Commissioner or Joint Secretary posted in the Board and such Commissioner or Joint Secretary shall exercise the powers specified in the said section with the approval of the Board.

Note that if the time limit for furnishing FORM GSTR-2 has been extended then the date of matching relating to claim of Input Tax Credit (ITC) shall also be extended accordingly.

Authorise GST Practitioner to file Return:

You may authorise an approved GST Tax Practitioner (CA/CS/CMA) to furnish the details of outward supplies under section 37, the details of inward supplies under section 38 and the return under section 39 or section 44 or section 45 in such manner as may be prescribed.

Fine for not filing GSTR-2:

In case you failed to furnish the details of inward supplies required under section 38 of CGST Act 2017 by the due date then you have to pay a late fee of ₹100/day during which such failure continues subject to a maximum amount of ₹5000.

Communicate to Supplier:

As per section 38(3) and section 38(4) of CGST Act 2017, the details of supplies modified, deleted or included by the recipient in the return furnished u/s 38(2) or 39(2) or 39(4) shall be communicated to the supplier concerned electronically in FORM GSTR-1A through the common portal i.e. gst.gov.in.

GST-How to Meet Your Obligations (Set of 2 Volumes) (Enforced with effect from 1-7-2017).

And such supplier shall either accept or reject the details so communicated on or before the 17th day, but not before the 15th day of the month succeeding the tax period.

Rectify Error or Omission:

Section 38(5) of CGST Act 2017 provides that any registered person, who has furnished the details under section 38(2) for any tax period and which have remained unmatched u/s 42 or u/s 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.

Rectification Not Allowed:

Rectification of error or omission is not allowed in respect of the details furnished through GSTR-2 if the return u/s 39 has been filed 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.

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