Responsibility of
Recipient of Goods or Services or both
The Goods and Services Tax Act,
2017 came into force with effect from 1.7.2017 in
The Central Government has amended Section 16 of the Central Goods and Services Tax Act, 2017 through the Finance Act, 2021 (13 of 2021) and implemented the same as per Notification No.39/2021-Central Tax dated 21.12.2021 with Gazette publication that the details of the invoices or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the meaner specified under section 37.
*Section 37. Furnishing
details of outward supplies. -
(1) Every registered
person, other than an Input Service Distributor, a non-resident taxable person
and a person paying tax under the provisions of section 10 or section 51 or
section 52, shall furnish, electronically, in such form and manner as may be
prescribed, the details of outward supplies of goods or services or both
effected during a tax period on or before the tenth day of the month succeeding
the said tax period and such details shall be communicated to the recipient of
the said supplies within such time and in such manner as may be prescribed:
Provided that the registered
person shall not be allowed to furnish the details of outward supplies during
the period from the eleventh day to the fifteenth day of the month succeeding
the tax period:
Provided further that the
Commissioner may, for reasons to be recorded in writing, by notification,
extend the time limit for furnishing such details for such class of taxable
persons as may be specified therein:
Provided also that any
extension of time limit notified by the Commissioner of State tax or
Commissioner of Union territory tax shall be deemed to be notified by the
Commissioner.
(2) Every registered
person who has been communicated the details under sub-section (3) of section
38 or the details pertaining to inward supplies of Input Service Distributor
under sub-section (4) of section 38, shall either accept or reject the details
so communicated, on or before the seventeenth day, but not before the fifteenth
day, of the month succeeding the tax period and the details furnished by him
under sub-section (1) shall stand amended accordingly.
(3) Any registered
person, who has furnished the details under sub-section (1) for any tax period
and which have remained unmatched under section 42 or section 43, shall, upon
discovery of any error or omission therein, rectify such error or omission in
such manner as may be prescribed, and shall pay the tax and interest, if any,
in case there is a short payment of tax on account of such error or omission,
in the return to be furnished for such tax period:
Provided that no rectification
of error or omission in respect of the details furnished under sub-section (1)
shall be allowed after furnishing of the return under section 39 for the month
of September following the end of the financial year to which such details
pertain, or furnishing of the relevant annual return, whichever is earlier.
1[Provided further that the
rectification of error or omission in respect of the details furnished under
sub-section (1) shall be allowed after furnishing of the return under section
39 for the month of September, 2018 till the due date for furnishing the
details under subsection (1) for the month of March, 2019 or for the quarter
January, 2019 to March, 2019]
Explanation. -For the purposes of
this Chapter, the expression "details of outward supplies" shall
include details of invoices, debit notes, credit notes and revised invoices
issued in relation to outward supplies made during any tax period.
According to the latest amendment of Section 16, if a supplier supplies Goods or Services or both, the Supplier will have to disclose the same in the monthly returns including debit note in FORM GSTR-1 without any omission or mistake and then only the recipient is eligible to take Input Tax Credit otherwise the recipient will have to pay full GST without deducting Input Tax Credit.
The relevant Notification and Finance Act Section are given below for ready reference:
