Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 43, verbatim (show)
*Section 43. 1[***] * Enforced w.e.f. 22nd June, 2017.
1. Omitted (w.e.f. 1st October, 2022 vide Notification No. 18/2022 - CT dated 28.09.2022) by s. 107 of The Finance Act 2022 (No. 6 of 2022) for
Section 43. 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 person (hereafter in this section referred to as the "supplier") for a tax period shall, in such manner and within such time as may be prescribed, be matched-
(a) with the corresponding reduction in the claim for input tax credit by the corresponding registered person (hereafter in this section referred to 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 such 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 such manner as may be prescribed.
(4) The duplication of claims for reduction in output tax liability shall be communicated to the supplier in such manner as may be prescribed.
(5) The amount in respect of which any discrepancy is communicated under sub-section (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 such 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 39.
(8) A supplier in whose output tax liability any amount has been added under sub-section (5) or sub-section (6), shall be liable to pay interest at the rate specified under sub-section (1) of section 50 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 such 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 provisions 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 50.
Questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope the section as a whole
Questions to answer on the file1 question
The tax period ends before the omission footnote 1
Questions to answer on the file3 questions
The tax period begins on or after the omission the section as it now stands
Questions to answer on the file2 questions
Amendment history
The CBIC text carries 2 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Change | Instrument | Effective from |
|---|---|---|---|
| "Enforced w.e.f. 22nd June, 2017." The section was brought into force by Notification No. 09/2017-Central Tax dated 28th June, 2017, except the proviso to sub-section (9) | the source's own commencement note, which is wrong for this section[2] | 01.07.2017 | |
| 1 | omitted the section; the footnote preserves the wording that stood until 30 September 2022 | s. 107 of The Finance Act 2022 (No. 6 of 2022), brought into force by Notification No. 18/2022 - CT dated 28.09.2022[3][4] | 01.10.2022 |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 39 | this provision requires Section 39 39(9) | 43(7) "if the recipient declares the details of the credit note in his valid return within the time specified in sub-section (9) of section 39" |
| Section 50 | this provision requires Section 50 50(1) | 43(8) "liable to pay interest at the rate specified under sub-section (1) of section 50" |
| Section 50 | this provision requires Section 50 50(3) | 43(10) "liable to pay interest on the amount so added at the rate specified in sub-section (3) of section 50" |
| Section 43A | this provision overridden by this provisionA | 43A(2), as preserved in its own footnote, "Notwithstanding anything contained in section 41, section 42 or section 43" |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Notifications (2)
| Number | Date | Subject |
|---|---|---|
| Notification No. 09/2017-Central Tax | 28 June 2017 | Seeks to bring into force certain sections of the CGST Act, 2017 w.e.f 01.07.2017 |
| Notification No. 10/2017-Central Tax | 28 June 2017 | Seeks to amend CGST Rules notification no 3/2017-Central Tax dt 19.06.2017 amended by a later instrument |
Unsettled questions
The words of section 43 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.
- Whether a liability, communication, addition, reclaim or refund that arose under sections 42, 43 or 43A for a tax period before 1 October 2022 survives their omission, which the omitting footnote dates but does not save
See also
- Section 42 of the CGST Act, 2017: [Omitted] ****
- Section 43A of the CGST Act, 2017: [Omitted] ****
- Section 50 of the CGST Act, 2017: interest on delayed payment of tax
References
- Central Board of Indirect Taxes and Customs. "Section 43. [Omitted] ****". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 2. Retrieved 17 September 2026.
- Notification No. 09/2017-Central Tax, dated 28 June 2017: Seeks to bring into force certain sections of the CGST Act, 2017 w.e.f 01.07.2017. Cited in CBIC footnote *.
- The Finance Act, 2022. Cited in CBIC footnote 1.
- Notification No. 18/2022-Central Tax, dated 28 September 2022: Seeks to notify 01.10.2022 as the date on which provisions of sections 100 to 114, except clause (c) of section 110 and section 111 of Finance Act, 2022 shall come into force. Cited in CBIC footnote 1.
External links
- CGST Act, 2017, Section 43 on the CBIC tax information portal