Section 43A was inserted in 2018 for a new return system in which recipients would verify their suppliers' invoices online and credit on unreported invoices would be capped. The new returns were abandoned; section 43A was never brought into force and was omitted from 01.10.2022.
Key points
- Section 43A was inserted in the CGST Act, 2017 by the CGST (Amendment) Act, 2018, but no date was ever notified for it to come into force.
- It would have let the rules prescribe how recipients verify suppliers' invoices and avail credit — with credit on invoices not uploaded by suppliers capped at 20% of the credit on uploaded invoices, and joint liability of supplier and recipient for tax on invoices uploaded without a return.
- It was omitted by the Finance Act, 2022 from 01.10.2022 (Notification 18/2022-Central Tax).
The provisions
43AProcedure for furnishing return and availing input tax credit (omitted)
Statutory text
*Section 43A. 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 43A. Procedure for furnishing return and availing input tax credit. -
(1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the suppliers.
(2) Notwithstanding anything contained in section 41, section 42 or section 43, the procedure for availing of input tax credit by the recipient and verification thereof shall be such as may be prescribed.
(3) The procedure for furnishing the details of outward supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such as may be prescribed.
(4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-section (3) shall be such as may be prescribed and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent. of the input tax credit available, on the basis of details furnished by the suppliers under the said sub-section.
(5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act.
(6) The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to outward supplies for which the details have been furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished.
(7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for non-recovery of an amount of tax or input tax credit wrongly availed not exceeding one thousand rupees.
(8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section (3) by a registered person,-
(i) within six months of taking registration;
(ii) who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such defaulted amount,
shall be such as may be prescribed.]
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Was section 43A of the CGST Act ever in force?
- No. It was inserted in 2018 for a new return system that was abandoned, was never notified, and was omitted from 01.10.2022.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The text is in the notes below. Since it never came into force, it has no effect for any period. Some of its ideas survive in other forms: the cap on credit for unreported invoices was applied for a time through Rule 36(4) (2019–2021), and the restriction on credit from new or defaulting suppliers is now in section 38(2)(b).