Section 38 of GST Act: Communication of details of inward supplies and input tax credit

Amended and updated notes on section 38 of CGST Act, 2017. Detail discussion on provisions and rules related to communication of details of inward supplies and input tax credit.

Amended and updated notes on section 38 of CGST Act, 2017. Detail discussion on provisions and rules related to furnishing details of inward supplies.

Chapter IX (Sections 3748) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to returns. Section 38 of CGST 2017 provides for furnishing details of inward supplies.

Recently, we have discussed in detail section 37 (Furnishing details of outward supplies) of CGST Act 2017. Today, we learn the provisions of section 38 of Central GST Act 2017 as amended by the Finance Act 2022.

Section 38 of the Central Goods and Services Tax Act, 2017 has been substituted with new section 38 of CGST Act 2017 by the Finance Act 2022.

Name of ActThe Central Goods and Services Tax Act 2017
Enacted byParliament of India
Administered byCentral Board of Indirect Taxes & Customs
Governing bodyGST Council
Number of Chapters21
Number of Sections174
You are reading:
Chapter No.IX
Chapter NameReturns
Section No.38
Section NameCommunication of details of inward supplies and input tax credit
Updated 2024 EditionGST Law Book PDF

Relevant Rules and Forms for Section 38:

  • Rule 60: Form and manner of ascertaining details of inward supplies
    • FORM GSTR-2: Details of inward supplies of goods or services    FORM GSTR-02A: Details of auto drafted supplies
    • FORM GSTR-2B: Auto-drafted ITC Statement

Section 38 of CGST – Communication of details of inward supplies and input tax credit1

Substitution of new section for section 38 are made by the Finance Act, 2022.

Section 38(1) of CGST Act

Section 38(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 an auto-generated statement 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.

Section 38(2) of CGST Act

Section 38(2): The auto-generated statement under sub-section (1) shall consist of––

(a) details of inward supplies in respect of which credit of input tax may be
available to the recipient; and

(b) details of supplies in respect of which such credit cannot be availed, whether wholly or partly, by the recipient, on account of the details of the said supplies being furnished under sub-section (1) of section 37,––

  • (i) by any registered person within such period of taking registration as may be prescribed; or
  • (ii) 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
  • (iii) by any registered person, the output tax payable by whom in accordance with the statement of outward supplies furnished by him under the said sub-section 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
  • (iv) by any registered person who, during such period 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
  • (v) 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
  • (vi) by such other class of persons as may be prescribed.
  1. Substitution of new section for section 38 are made by the Finance Act, 2022. ↩︎


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