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CS Executive · Tax Laws and Practice · Input Tax Credit and Computation of GST Liability

The auto-generated statement under section 38 of the CGST Act, 2017 consists of which two sets of details?

The statement contains details of inward supplies on which input tax credit may be available to the recipient, and details of supplies on which credit cannot be availed, wholly or partly, because of the specified supplier-related circumstances. Ineligible supplies are therefore shown separately, not omitted.

  1. AInward supplies where credit may be available, and supplies where credit cannot be availed wholly or partlyCorrect
  2. BOutward supplies of the recipient and his exports
  3. CDetails of tax paid in cash and details of refunds sanctioned
  4. DDetails of eligible credit only, with ineligible supplies omitted altogether

Explanation

Section 38(2) says the statement has clause (a), inward supplies for which credit may be available, and clause (b), supplies for which credit cannot be availed wholly or partly because of specified supplier defaults. The last option is wrong since ineligible supplies are also shown.

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