Communication of details of inward supplies and input tax credit
Commencement. 22nd June, 2017 for sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30, 139, 146 and 164 1st July, 2017 for sections 6 to 9, 11 to 21, 31 to 41, 42 (except proviso to sub-section (9) of S 42), 43 (except proviso to subsection (9) of S 43), 44 to 50, 53 to 138, 140 to 163, 165 to 174.
Section 38 of the Central Goods and Services Tax Act, 2017 deals with communication of details of inward supplies and input tax credit. The details of outward supplies furnished by the registered persons under sub-section (1) of section 37 and of such other supplies as may be prescribed, and an auto-generated statement containing the details of input tax credit shall be made available electronically to the recipients of such supplie The Act was enacted on 12 Apr 2017.
1[38. Communication of details of inward supplies input tax credit.--- (1) The details of outward supplies furnished by the registered persons under sub-section (1) of section 37 and of such other supplies as may be prescribed, and an auto-generated statement containing the details of input tax credit shall be made available electronically to the recipients of such supplies in such form and manner, within such time, and subject to such conditions and restrictions as may be prescribed.
(2) The auto-generated statement under sub-section (1) shall consist of---
(a) details of inward supplies in respect of which credit of input tax may be available to the recipient; and
(b) details of supplies in respect of which such credit cannot be availed, whether wholly or partly, by the recipient, on account of the details of the said supplies being furnished under sub-section (1) of section 37,---
(i) by any registered person within such period of taking registration as may be prescribed; or
(ii) by any registered person, who has defaulted in payment of tax and where such default has continued for such period as may be prescribed; or
(iii) by any registered person, the output tax payable by whom in accordance with the statement of outward supplies furnished by him under the said sub-section during such period, as may be prescribed, exceeds the output tax paid by him during the said period by such limit as may be prescribed; or
(iv) by any registered person who, during such period as may be prescribed, has availed credit of input tax of an amount that exceeds the credit that can be availed by him in accordance with clause (a), by such limit as may be prescribed; or
(v) by any registered person, who has defaulted in discharging his tax liability in accordance with the provisions of sub-section (12) of section 49 subject to such conditions and restrictions as may be prescribed; or
(vi) by such other class of persons as may be prescribed.]
Section 38, The Central Goods and Services Tax Act, 2017 (Act 12 of 2017).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Union of India through Its Secretary vs Bharti Airtel LTD
Court's Decision & Legal Precedent
A registered person's primary obligation under the CGST Act, 2017 is to self-assess taxes and input tax credit based on books of accounts and records maintained by him as per statutory requirements, not on auto-generated information from the common electronic portal. The common portal is merely a facilitator. Consequently, non-operability of electronic forms does not excuse a registered person from this self-assessment obligation. Section 39(9) of the CGST Act, 2017 expressly provides that rectification of omission or incorrect particulars in returns can be effected only in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed, not in the return for the period to which the error relates. This provision applies with full vigor to Form GSTR3B returns. Therefore, Circular No. 26/26/2017GST dated 29.12.2017 restricting rectification of Form GSTR3B to subsequent months is consistent with the statutory framework and cannot be read down. A registered person cannot unilaterally rectify returns for the relevant period as this would have cascading effects on other stakeholders and create uncertainty in tax administration.
On this section: Inward supplies reporting in Form GSTR2; part of matching and reconciliation mechanism; not primary basis for self-assessment
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
4 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 25 instruments name this provision in its title or its text without being made under it.
- Notification No- 74/2020-Central Tax dated 15.10.2020Notification 2020
- Notification No- 75/2020-Central Tax dated 15.10.2020Notification 2020
- Notification No. 27/2020 -Central Tax dated 23.03.2020Notification 2020
- Notification No. 28/2020 -Central Tax dated 23.03.2020Notification 2020
- Notification No. 11/2019 – Central Tax dated 07.03.2019Notification 2019
- Notification No. 12/2019 – Central Tax dated 07.03.2019Notification 2019
- Notification No. 27/2019 – Central Tax dated 28.06.2019Notification 2019
- Notification No. 28/2019 – Central Tax dated 28.06.2019Notification 2019
- Notification No. 45/2019 -Central Tax dated 09.10.2019Notification 2019
- Notification No. 46/2019 -Central Tax dated 09.10.2019Notification 2019
- Notification No. 49/2019 -Central Tax dated 09.10.2019Notification 2019
- Notification No. 17/2018 – Central Tax dated 28.03.2018Notification 2018
- Notification No. 18/2018 – Central Tax dated 28.03.2018Notification 2018
- Notification No. 32/2018 Central Tax dated 10.08.2018Notification 2018
- Notification No. 33/2018 Central Tax dated 10.08.2018Notification 2018
- Notification No. 43/2018 – Central Tax dated 10.09.2018Notification 2018
- Notification No. 44/2018 – Central Tax dated 10.09.2018Notification 2018
- Circular No. 7/7/2017-GST dated 01.09.2017Circular 2017
- Circular No.15 /15/2017 - GST dated 06.11.2017Circular 2017
- Notification No. 17/2017 – Central Tax dated 27.07.2017Notification 2017
- Notification No. 57/2017 – Central Tax dated 15.11.2017Notification 2017
- Notification No. 58/2017 – Central Tax dated 15.11.2017Notification 2017
- Notification No. 71/2017 – Central Tax dated 29.12.2017Notification 2017
- Notification No. 72/2017 – Central Tax dated 29.12.2017Notification 2017
- Seeks to notify Goods and Services Tax Settlement of Funds Rules, 2017Notification 2017
Questions about Section 38
What have the courts held on Section 38 of the Central Goods and Services Tax Act?
Union of India through Its Secretary vs Bharti Airtel LTD (28 Oct 2021) is the leading judgment on this section among those set out below: Inward supplies reporting in Form GSTR2; part of matching and reconciliation mechanism; not primary basis for self-assessment.
How do I find court cases under Section 38 of the Central Goods and Services Tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CGST Act 38, section 38 CGST Act, section 38 of the Central Goods and Services Tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Union of India through Its Secretary vs Bharti Airtel LTD (28 Oct 2021).
What should I read with Section 38 of the Central Goods and Services Tax Act, and has it changed?
Its own text turns on section 37 (Furnishing details of outward supplies), section 49 (Payment of tax, interest, penalty and other amounts), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 4: most recently Notification No. 19/2017 – Central Tax dated 08.08.2017 (2017), then Notification No. 29/2017 – Central Tax dated 05.09.2017 (2017), and 2 more.
When was Section 38 of the Central Goods and Services Tax Act enacted?
Section 38 of the Central Goods and Services Tax Act, cited as CGST Act 38, was enacted on 12 Apr 2017 as Act 12 of 2017. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5109 words
- 142. Miscellaneous transitional provisions1966 words
- 140. Transitional arrangements for input tax credit1883 words
- 54. Refund of tax1858 words
- 110. President and Members of Appellate Tribunal, their qualification, appointment, conditions of service, etc1647 words
- 74A. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward1299 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.