Section-47. Transfer of input tax credit

                     Section-47.                                       Transfer of input tax credit

On utilization of input tax credit availed under the CGST Act for payment of tax dues

under the IGST Act as per sub-section (...). of section

44, the amount collected as CGST shall stand reduced by an amount equal to the credit

so utilized and the Central Government shall transfer an amount equal to the amount so

reduced from the CGST account to the IGST account in the manner and time as may be

prescribed.

                                                                                                          CGST Act

On utilization of input tax credit availed under the SGST Act for payment of tax dues

under the IGST Act as per sub-section (...) of section

44, the amount collected as SGST shall stand reduced by an amount equal to the credit

so utilized and shall be apportioned to the Central Government and the State

Government shall transfer an amount equal to the amount so apportioned to the IGST

account in the manner and time as may be prescribed.

                                                                                                          SGST Act

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Section-46. Tax deduction at source

                 Section-46.                                       Tax deduction at source

(1) Notwithstanding anything contained to the contrary in this Act, the Central or a

State Government may mandate, -

(a) a department or establishment of the Central or State Government, or

(b) Local authority, or

(c) Governmental agencies, or

(d) such persons or category of persons as may be notified, by the Central or a State

Government on the recommendations of the Council,

[hereinafter referred to in this section as “the deductor”], to deduct tax at the rate

of one percent from the payment made or credited to the supplier [hereinafter

referred to in this section as “the deductee”] of taxable goods and/or services,

notified by the Central or a State Government on the recommendations of the

Council, where the total value of such supply, under a contract, exceeds five lakh

rupees.

Explanation. – For the purpose of deduction of tax specified above, the value of

supply shall be taken as the amount excluding the tax indicated in the invoice.

(2) The amount deducted as tax under this section shall be paid to the account of the

appropriate Government by the deductor within ten days after the end of the

month in which such deduction is made, in the manner prescribed.

(3) The deductor shall, in the manner prescribed, furnish to the deductee a certificate

mentioning therein the contract value, rate of deduction, amount deducted,

amount paid to the appropriate Government and such particulars as may be

prescribed in this behalf.

(4) If any deductor fails to furnish to the deductee the certificate, after deducting the

tax at source, within five days of crediting the amount so deducted to the

appropriate Government, the deductor shall be liable to pay, by way of a late fee,

a sum of one hundred rupees per day from the day after the expiry of the five

day period until the failure is rectified:

PROVIDED that the amount of fee payable under this sub-section shall not

exceed five thousand rupees.

(5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted

and reflected in the return of the deductor furnished under sub-section (3) of

section 34, in the manner prescribed.

(6) If any deductor fails to pay to the account of the appropriate Government the

amount deducted as tax under sub-section (1), he shall be liable to pay interest

in accordance with the provisions of sub-section (1) of section 45, in addition to

the amount of tax deducted.

(7) Determination of the amount in default under this section shall be made in the

manner specified in section 66 or 67, as the case may be.

(8) Refund to the deductor or the deductee, as the case may be, arising on account

of excess or erroneous deduction shall be dealt with in accordance with the

provisions of section 48:

PROVIDED that no refund to deductor shall be granted if the amount deducted has been

credited to the electronic cash ledger of the deductee.

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Section-45. Interest on delayed payment of tax

                   Section-45.                                  Interest on delayed payment of tax

(1) Every person liable to pay tax in accordance with the provisions of the Act or

rules made thereunder, who fails to pay the tax or any part thereof to the

account of the Central or a State Government within the period prescribed, shall,

on his own, for the period for which the tax or any part thereof remains unpaid,

pay interest at such rate as may be notified, on the recommendation of the

Council, by the Central or a State Government.

(2) The interest under sub-section (1) shall be calculated from the first day on which

such tax was due to be paid.

(3) In case a taxable person makes an undue or excess claim of input tax credit

under sub-section (10) of section 37 or undue or excess reduction in output tax

liability under sub-section (10) of section 38, he shall be liable to pay interest on

such undue or excess claim or on such undue or excess reduction, as the case

may be, at the prescribed rate for the period computed in the manner prescribed.

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Section-44. Payment of tax, interest, penalty and other amounts

                       Section-44.                Payment of tax, interest, penalty and other amounts

(1) Every deposit made towards tax, interest, penalty, fee or any other amount by a

taxable person by internet banking or by using credit/debit cards or National

Electronic Fund Transfer or Real Time Gross Settlement or by any other mode,

subject to such conditions and restrictions as may be prescribed in this behalf,

shall be credited to the electronic cash ledger of such person to be maintained in

the manner as may be prescribed.

Explanation.- The date of credit to the account of the appropriate Government in the

authorized bank shall be deemed to be the date of deposit in the electronic cash ledger.

(2) The input tax credit as self-assessed in the return of a taxable person shall be

credited to his electronic credit ledger, in accordance with section 36, to be

maintained in the manner as may be prescribed.

(3) The amount available in the electronic cash ledger may be used for making any

payment towards tax, interest, penalty, fees or any other amount payable under

the provisions of the Act or the rules made thereunder in such manner and

subject to such conditions and within such time as may be prescribed.

(4) The amount available in the electronic credit ledger may be used for making any

payment towards output tax payable under the provisions of the Act or the rules

made thereunder in such manner and subject to such conditions and within such

time as may be prescribed.

(5) (a) The amount of input tax credit on account of IGST available in the electronic

credit ledger shall first be utilized towards payment of IGST and the amount

remaining, if any, may be utilized towards the payment of CGST and SGST, in

that order.

(b) The amount of input tax credit on account of CGST available in the electronic

credit ledger shall first be utilized towards payment of CGST and the amount

remaining, if any, may be utilized towards the payment of IGST.

(c) The input tax credit on account of CGST shall not be utilized towards payment

of SGST.

                                                                                                   {CGST Act}

(b) The amount of input tax credit on account of SGST available in the electronic

credit ledger shall first be utilized towards payment of SGST and the amount

remaining, if any, may be utilized towards the payment of IGST.

(c) The input tax credit on account of SGST shall not be utilized towards payment

of CGST.

                                                                                                    {SGST Act}

(6) The balance in the cash or credit ledger after payment of tax, interest, penalty,

fee or any other amount payable under the Act or the rules made thereunder

may be refunded in accordance with the provisions of section 48 and the amount

collected as CGST/SGST shall stand reduced to that extent.

(7) All liabilities of a taxable person under this Act shall be recorded and maintained

in an electronic liability register as may be prescribed.

(8) Every taxable person shall discharge his tax and other dues under this Act or the

rules made thereunder in the following order:

(a) self-assessed tax, and other dues related to returns of previous tax periods;

(b) self-assessed tax, and other dues related to return of current tax period;

(c) any other amount payable under the Act or the rules made thereunder

including the demand determined under section 66 or 67.

(9) Every person who has paid the tax on goods and/or services under this Act shall,

unless the contrary is proved by him, be deemed to have passed on the full

incidence of such tax to the recipient of such goods and/or services.

Explanation. 1— For the purposes of this section, the expression “tax dues” means

the tax payable under this Act and does not include interest, fee and penalty.

Explanation. 2- For the purposes of this section, the expression “other dues” means

interest, penalty, fee or any other amount payable under the Act or the rules made

thereunder.

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Section-43. Tax Return Preparers

                    Section-43.                                           Tax Return Preparers

(1) The appropriate Government may, by rules, prescribe the manner of approval of

Tax Return Preparers, their eligibility conditions, duties and obligations, manner

of removal and such other conditions as may be relevant for their functioning as

a Tax Return Preparer.

(2) A registered taxable person may, in the manner prescribed, authorise an

approved Tax Return Preparer to furnish the details of outward supplies under

section 32, the details of inward supplies under section 33 and the return under

section 34, 39 or section 40, as the case may be, and such other tasks as may be

prescribed.

(3) Notwithstanding anything contained in sub-section (2), the responsibility for

correctness of any particulars furnished in the return and/or other details filed by

the Tax Return Preparer shall continue to rest with the registered taxable person

on whose behalf such return and details are filed.

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Section-42. Levy of late fee

                     Section-42.                                              Levy of late fee

(1) Any registered taxable person who fails to furnish the details of outward or

inward supplies required under section 32 or section 33, as the case may be, or

returns required under section 34 or section 40 by the due date shall be liable to

pay late fee of one hundred rupees for every day during which such failure

continues subject to a maximum of five thousand rupees.

(2) Any registered taxable person who fails to furnish the return required under

section 39 by the due date shall be liable to a late fee of one hundred rupees for

every day during which such failure continues subject to a maximum of an

amount calculated at a quarter percent of his turnover in the State.

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Section-41. Notice to return defaulters

                    Section-41.                                      Notice to return defaulters

Where a registered taxable person fails to furnish a return under section 34, section 39

or section 40, a notice shall be issued requiring him to furnish such return within fifteen

days in such form and manner as may be prescribed.

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Section-40. Final return

                   Section-40.                                             Final return

Every registered taxable person who applies for cancellation of registration shall furnish

a final return within three months of the date of cancellation or date of cancellation

order, whichever is later, in such form and in such manner as may be prescribed.

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Section-39. Annual return

                  Section-39.                                               Annual return

(1) Every registered taxable person, other than an input service distributor, a person

paying tax under section 46 or section 56, a casual taxable person and a nonresident

taxable person, shall furnish an annual return for every financial year

electronically in such form and in such manner as may be prescribed on or before

the thirty first day of December following the end of such financial year.

(2) Every registered taxable person who is required to get his accounts audited under

sub-section (4) of section 53 shall furnish, electronically, the annual return under

sub-section (1) along with the audited copy of the annual accounts and a

reconciliation statement, reconciling the value of supplies declared in the return

furnished for the year with the audited annual financial statement, and such

other particulars as may be prescribed.

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Section-38. Matching, reversal and reclaim of reduction in output tax liability

                  Section-38.                   Matching, reversal and reclaim of reduction in output tax liability

(1) The details of every credit note relating to outward supply furnished by a

registered taxable person (hereinafter referred to in this section as the ‘supplier’)

for a tax period shall, in the manner and within the time prescribed, be matched-

(a) with the corresponding reduction in the claim for input tax credit by the

corresponding taxable person (hereinafter referred to in this section as the

‘recipient’) in his valid return for the same tax period or any subsequent tax

period, and

(b) for duplication of claims for reduction in output tax liability.

(2) The claim for reduction in output tax liability by the supplier that matches with

the corresponding reduction in the claim for input tax credit by the recipient shall

be finally accepted and communicated, in the manner as may be prescribed, to

the supplier.

(3) Where the reduction of output tax liability in respect of outward supplies exceeds

the corresponding reduction in the claim for input tax credit or the corresponding

credit note is not declared by the recipient in his valid returns, the discrepancy

shall be communicated to both such persons in the manner as may be

prescribed.

(4) The duplication of claims for reduction in output tax liability shall be

communicated to the supplier in the manner as may be prescribed.

(5) The amount in respect of which any discrepancy is communicated under subsection (3) and which is not rectified by the recipient in his valid return for the month in which discrepancy is communicated shall be added to the output tax liability of the supplier, in the manner as may be prescribed, in his return for the month succeeding the month in which the discrepancy is communicated.

(6) The amount in respect of any reduction in output tax liability that is found to be

on account of duplication of claims shall be added to the output tax liability of the

supplier in his return for the month in which such duplication is communicated.

(7) The supplier shall be eligible to reduce, from his output tax liability, the amount

added under sub-section (5) if the recipient declares the details of the credit note

in his valid return within the time specified in sub-section (9) of section 34.

(8) A supplier in whose output tax liability any amount has been added under subsection (5) or, as the case may be, under sub-section (6), shall be liable to pay interest at the rate specified under sub-section (1) of section 45 in respect of the amount so added from the date of such claim for reduction in the output tax liability till the corresponding additions are made under the said sub-sections.

(9) Where any reduction in output tax liability is accepted under sub-section (7), the

interest paid under sub-section (8) shall be refunded to the supplier by crediting

the amount in the corresponding head of his electronic cash ledger in the manner

as may be prescribed:

PROVIDED that the amount of interest to be credited in any case shall not exceed

the amount of interest paid by the recipient.

(10) The amount reduced from output tax liability in contravention of the

provision of sub-section (7) shall be added to the output tax liability of the

supplier in his return for the month in which such contravention takes place and

such supplier shall be liable to pay interest on the amount so added at the rate

specified in sub-section (3) of section 45 .

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Section-37. Matching, reversal and reclaim of input tax credit

                  Section-37.                   Matching, reversal and reclaim of input tax credit

(1) The details of every inward supply furnished by a registered taxable person

(hereinafter referred to in this section as the ‘recipient’) for a tax period shall, in

the manner and within the time prescribed, be matched-

(a) with the corresponding details of outward supply furnished by the corresponding

taxable person (hereinafter referred to in this section as the ‘supplier’) in his valid

return for the same tax period or any preceding tax period,

(b) with the additional duty of customs paid under section 3 of the Customs Tariff

Act, 1975 (51 of 1975) in respect of goods imported by him, and

(c) for duplication of claims of input tax credit.

(2) The claim of input tax credit in respect of invoices and/or debit notes relating to

inward supply that match with the details of corresponding outward supply or

with the additional duty of customs paid shall, subject to the provisions of section

16 or 17, as the case may be, be finally accepted and such acceptance shall be

communicated, in the manner as may be prescribed, to the recipient.

(3) Where the input tax credit claimed by a recipient in respect of an inward supply

is in excess of the tax declared by the supplier for the same supply or the

outward supply is not declared by the supplier in his valid returns, the

discrepancy shall be communicated to both such persons in the manner as may

be prescribed.

(4) The duplication of claims of input tax credit shall be communicated to the

recipient in the manner as may be prescribed.

(5) The amount in respect of which any discrepancy is communicated under subsection (3) and which is not rectified by the supplier in his valid return for the

month in which discrepancy is communicated shall be added to the output tax

liability of the recipient, in the manner as may be prescribed, in his return for the

month succeeding the month in which the discrepancy is communicated.

(6) The amount claimed as input tax credit that is found to be in excess on account

of duplication of claims shall be added to the output tax liability of the recipient in

his return for the month in which the duplication is communicated.

(7) The recipient shall be eligible to reduce, from his output tax liability, the amount

added under sub-section (5) if the supplier declares the details of the invoice

and/or debit note in his valid return within the time specified in sub-section (9) of

section 34.

(8) A recipient in whose output tax liability any amount has been added under subsection (5) or, as the case may be, under sub-section (6), shall be liable to pay

interest at the rate specified under sub-section (1) of section 45 on the amount

so added from the date of availing of credit till the corresponding additions are

made under the said sub-sections.

(9) Where any reduction in output tax liability is accepted under sub-section (7), the

interest paid under sub-section (8) shall be refunded to the recipient by crediting

the amount in the corresponding head of his electronic cash ledger in the manner

as may be prescribed:

PROVIDED that the amount of interest to be credited in any case shall not exceed

the amount of interest paid by the supplier.

(10) The amount reduced from the output tax liability in contravention of the

provisions of sub-section (7) shall be added to the output tax liability of the

recipient in his return for the month in which such contravention takes place and

such recipient shall be liable to pay interest on the amount so added at the rate

specified in sub-section (3) of section 45.

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Section-36. Claim of input tax credit and provisional acceptance thereof

                   Section-36.                         Claim of input tax credit and provisional acceptance thereof

(1) Every registered taxable person shall, subject to such conditions and restrictions

as may be prescribed in this behalf, be entitled to take credit of input tax, as selfassessed

in his return and such amount shall be credited, on a provisional basis,

to his electronic credit ledger to be maintained in the manner as may be

prescribed.

(2) The credit referred to in sub-section (1) shall be utilised only for payment of selfassessed

output tax liability as per the return referred to in sub-section (1).

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