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

Under the CGST Act, 2017, which statement correctly describes what is made available electronically to a recipient under the provision on communication of details of inward supplies and input tax credit?

The recipient is given electronic access to the supplier-furnished outward supply details and an auto-generated input tax credit statement. Section 38(1) provides for this communication, in the prescribed form, manner and time. It does not cover the recipient's own records or the supplier's ledgers.

  1. AOnly the recipient's own self-prepared purchase register
  2. BThe details of outward supplies furnished by suppliers in their statements of outward supplies, along with an auto-generated statement of input tax creditCorrect
  3. COnly the supplier's final annual return
  4. DThe supplier's electronic cash ledger balance

Explanation

Section 38(1) provides that details of outward supplies furnished by registered persons under section 37(1), and other prescribed supplies, plus an auto-generated statement containing input tax credit details, are made available electronically to recipients. The recipient's own register and the supplier's ledger are not part of this communication.

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