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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 is required to consist of which of the following?

The statement has two components: inward supplies on which credit may be available, and supplies on which credit cannot be availed wholly or partly because of specified supplier-side circumstances, such as defaulting suppliers. This two-part structure is laid down in section 38(2).

  1. AOnly details of supplies on which credit is blocked
  2. BOnly details of exports made by the recipient
  3. CDetails of inward supplies on which credit may be available, and details of supplies on which credit cannot be availed wholly or partly because of the supplier's specified circumstancesCorrect
  4. DOnly the details of tax paid by the recipient in cash

Explanation

Section 38(2) says the statement has two parts: clause (a) inward supplies where credit may be available, and clause (b) supplies where credit cannot be availed, wholly or partly, due to the supplier-related circumstances listed there. The other options mention items that are not part of it.

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