Section 42 - Omitted

Section 42 removal ends automated matching of inward and outward tax returns, affecting input tax credit reconciliation and liability

Section 42, now omitted, previously required automated matching of a recipient's inward-supply details with corresponding supplier outward-supply returns and import tax records to detect mismatches and duplicate input tax credit claims. Matched credits were to be accepted and communicated; discrepancies or duplication were to be notified to both parties. If a supplier failed to rectify a discrepancy within the prescribed period, the unrectified amount or duplicated credit would be added to the recipient's output tax liability for the succeeding month, with interest charged from the date credit was availed. If the supplier later corrected the return, the recipient could reduce liability and receive limited interest reimbursement.