Input tax credit matching triggers additions to output tax liability and interest where supplier reporting discrepancies persist. Section 42 prescribes matching of recipients' inward supply details with suppliers' outward returns and import tax payments, acceptance of matched ITC claims, and communication of discrepancies or duplicate claims to both parties. Unrectified discrepancies or duplication lead to addition of the disputed amount to the recipient's output tax liability; such additions attract interest from the date of availing credit. The recipient may reverse the addition if the supplier rectifies within the prescribed timeframe, and interest refunded is credited to the electronic cash ledger, subject to the cap of interest actually paid by the supplier.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input tax credit matching triggers additions to output tax liability and interest where supplier reporting discrepancies persist.
Section 42 prescribes matching of recipients' inward supply details with suppliers' outward returns and import tax payments, acceptance of matched ITC claims, and communication of discrepancies or duplicate claims to both parties. Unrectified discrepancies or duplication lead to addition of the disputed amount to the recipient's output tax liability; such additions attract interest from the date of availing credit. The recipient may reverse the addition if the supplier rectifies within the prescribed timeframe, and interest refunded is credited to the electronic cash ledger, subject to the cap of interest actually paid by the supplier.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
