What does Section 38 say?

Section 38 provides the mechanism through which recipients receive information relating to inward supplies and eligible Input Tax Credit. The GST portal communicates details based on returns filed by suppliers and identifies credits that may be available, restricted, or ineligible.

The purpose of this section is to enable recipients to verify purchases and claim only legitimate ITC. It also helps tax authorities monitor compliance and prevent fraudulent credit claims. The section strengthens the matching and verification framework under GST.

By providing visibility into supplier-reported transactions, the section enhances transparency and reduces disputes regarding ITC availability.

Simple Example

A company purchases raw materials from multiple vendors. After vendors upload their sales details, the purchaser can view eligible ITC reflected on the GST portal.

Key Points

• Communicates inward supply details.
  • Facilitates ITC verification.
  • Helps identify eligible and restricted credits.
  • Reduces fraudulent ITC claims.
  • Improves GST transparency.
  • Supports compliance monitoring.

In One Line

Section 38 enables taxpayers to verify purchases and claim eligible Input Tax Credit through GST portal information.