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

Which of the following is a ground under section 38(2)(b) for treating supplies as ones on which the recipient cannot avail credit?

Credit cannot be availed where the supplier furnished the supply details within the prescribed period of taking registration. This is one of the listed supplier-related grounds in section 38(2)(b). Quarterly filing, supplier location and the recipient's cash ledger balance are not grounds.

  1. AThe recipient has opted for quarterly return filing
  2. BThe supplier furnished the details within the prescribed period of taking registrationCorrect
  3. CThe supplier is located in a different State from the recipient
  4. DThe recipient has a large closing balance in his electronic cash ledger

Explanation

Section 38(2)(b)(i) covers details furnished by a registered person within such period of taking registration as may be prescribed. The other options are not grounds listed in the section.

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