Section 142 of CGST Act,2017 Miscellaneous transitional provisions

Section 142 of CGST Act,2017 Miscellaneous transitional provisions

(updated 12th April,2018)

Section 142 of CGST Act,2017 from bare act : (1) Where any goods on which duty, if any, had been paid under the existing lawat the time of removal thereof, not being earlier than six months prior to the appointed day, arereturned to any place of business on or after the appointed day, the registered person shallbe eligible for refund of the duty paid under the existing law where such goods are returnedby a person, other than a registered person, to the said place of business within a period ofsix months from the appointed day and such goods are identifiable to the satisfaction of theproper officer: Provided that if the said goods are returned by a registered person, the return of suchgoods shall be deemed to be a supply. (2) (a) where, in pursuance of a contract entered into prior to the appointed day, theprice of any goods or services or both is revised upwards on or after the appointed day, theregistered person who had removed or provided such goods or services or both shall issueto the recipient a supplementary invoice or debit note, containing such particulars as may beprescribed, within thirty days of such price revision and for the purposes of this Act suchsupplementary invoice or debit note shall be deemed to have been issued in respect of anoutward supply made under this Act; (b) where, in pursuance of a contract entered into prior to the appointed day, the priceof any goods or services or both is revised downwards on or after the appointed day, theregistered person who had removed or provided such goods or services or both may issueto the recipient a credit note, containing such particulars as may be prescribed, within thirtydays of such price revision and for the purposes of this Act such credit note shall be deemedto have been issued in respect of an outward supply made under this Act: Provided that the registered person shall be allowed to reduce his tax liability onaccount of issue of the credit note only if the recipient of the credit note has reduced his input tax credit corresponding to such reduction of tax liability. (3) Every claim for refund filed by any person before, on or after the appointed day, forrefund of any amount of CENVAT credit, duty, tax, interest or any other amount paid under the existing law, shall be disposed of in accordance with the provisions of existing law andany amount eventually accruing to him shall be paid in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions ofsub-section (2) of section 11B of the Central Excise Act, 1944: Provided that where any claim for refund of CENVAT credit is fully or partially rejected,the amount so rejected shall lapse: Provided further that no refund shall be allowed of any amount of CENVAT creditwhere the balance of the said amount as on the appointed day has been carried forwardunder this Act. (4) Every claim for refund filed after the appointed day for refund of any duty or taxpaid under existing law in respect of the goods or services exported before or after the appointed day, shall be disposed of in accordance with the provisions of the existing law: Provided that where any claim for refund of CENVAT credit is fully or partially rejected,the amount so rejected shall lapse: Provided further that no refund shall be allowed of any amount of CENVAT creditwhere the balance of the said amount as on the appointed day has been carried forward under this Act. (5) Every claim filed by a person after the appointed day for refund of tax paid underthe existing law in respect of services not provided shall be disposed of in accordance with the provisions of existing law and any amount eventually accruing to him shall be paid incash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions of sub-section (2) of section 11B of the Central ExciseAct, 1944. (6)

(a) every proceeding of appeal, review or reference relating to a claim for CENVATcredit initiated whether before, on or after the appointed day under the existing law shall be disposed of in accordance with the provisions of existing law, and any amount of creditfound to be admissible to the claimant shall be refunded to him in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than theprovisions of sub-section (2) of section 11B of the Central Excise Act, 1944 and the amount rejected, if any, shall not be admissible as input tax credit under this Act:

Provided that no refund shall be allowed of any amount of CENVAT credit where thebalance of the said amount as on the appointed day has been carried forward under this Act;

(b) every proceeding of appeal, review or reference relating to recovery of CENVATcredit initiated whether before, on or after the appointed day under the existing law shall be disposed of in accordance with the provisions of existing law and if any amount of creditbecomes recoverable as a result of such appeal, review or reference, the same shall, unlessrecovered under the existing law, be recovered as an arrear of tax under this Act and theamount so recovered shall not be admissible as input tax credit under this Act.

(7)

(a) every proceeding of appeal, review or reference relating to any output duty ortax liability initiated whether before, on or after the appointed day under the existing law,shall be disposed of in accordance with the provisions of the existing law, and if anyamount becomes recoverable as a result of such appeal, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of duty or tax under thisAct and the amount so recovered shall not be admissible as input tax credit under this Act.

(b) every proceeding of appeal, review or reference relating to any output duty or taxliability initiated whether before, on or after the appointed day under the existing law, shall bedisposed of in accordance with the provisions of the existing law, and any amount found tobe admissible to the claimant shall be refunded to him in cash, notwithstanding anything tothe contrary contained under the provisions of existing law other than the provisions ofsub-section (2) of section 11B of the Central Excise Act, 1944 and the amount rejected, if any, shall not be admissible as input tax credit under this Act.

(8)

(a) where in pursuance of an assessment or adjudication proceedings instituted,whether before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes recoverable from the person, the same shall, unless recoveredunder the existing law, be recovered as an arrear of tax under this Act and the amount sorecovered shall not be admissible as input tax credit under this Act;

(b) where in pursuance of an assessment or adjudication proceedings instituted, whetherbefore, on or after the appointed day, under the existing law, any amount of tax, interest, fineor penalty becomes refundable to the taxable person, the same shall be refunded to him incash under the said law, notwithstanding anything to the contrary contained in the said lawother than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944and the amount rejected, if any, shall not be admissible as input tax credit under this Act.

(9)

(a) where any return, furnished under the existing law, is revised after the appointedday and if, pursuant to such revision, any amount is found to be recoverable or any amountof CENVAT credit is found to be inadmissible, the same shall, unless recovered under theexisting law, be recovered as an arrear of tax under this Act and the amount so recovered shallnot be admissible as input tax credit under this Act;

(b) where any return, furnished under the existing law, is revised after the appointedday but within the time limit specified for such revision under the existing law and if, pursuantto such revision, any amount is found to be refundable or CENVAT credit is found to beadmissible to any taxable person, the same shall be refunded to him in cash under the existinglaw, notwithstanding anything to the contrary contained in the said law other than theprovisions of sub-section (2) of section 11B of the Central Excise Act, 1944 and the amountrejected, if any, shall not be admissible as input tax credit under this Act.

(10) Save as otherwise provided in this Chapter, the goods or services or both suppliedon or after the appointed day in pursuance of a contract entered into prior to the appointed day shall be liable to tax under the provisions of this Act. (11)

(a) notwithstanding anything contained in section 12, no tax shall be payable ongoods under this Act to the extent the tax was leviable on the said goods under the ValueAdded Tax Act of the State;

(b) notwithstanding anything contained in section 13, no tax shall be payable onservices under this Act to the extent the tax was leviable on the said services underChapter V of the Finance Act, 1994;

(c) where tax was paid on any supply both under the Value Added Tax Act and underChapter V of the Finance Act, 1994, tax shall be leviable under this Act and the taxable personshall be entitled to take credit of value added tax or service tax paid under the existing law tothe extent of supplies made after the appointed day and such credit shall be calculated insuch manner as may be prescribed.

(12) Where any goods sent on approval basis, not earlier than six months before theappointed day, are rejected or not approved by the buyer and returned to the seller on or afterthe appointed day, no tax shall be payable thereon if such goods are returned within sixmonths from the appointed day: Provided that the said period of six months may, on sufficient cause being shown, beextended by the Commissioner for a further period not exceeding two months: Provided further that the tax shall be payable by the person returning the goods if suchgoods are liable to tax under this Act, and are returned after a period specified in thissub-section: Provided also that tax shall be payable by the person who has sent the goods onapproval basis if such goods are liable to tax under this Act, and are not returned within aperiod specified in this sub-section. (13) Where a supplier has made any sale of goods in respect of which tax was requiredto be deducted at source under any law of a State or Union territory relating to Value AddedTax and has also issued an invoice for the same before the appointed day, no deduction of taxat source under section 51 shall be made by the deductor under the said section wherepayment to the said supplier is made on or after the appointed day. Explanation.For the purposes of this Chapter, the expressions capital goods,Central Value Added Tax (CENVAT) credit, first stage dealer, second stage dealer, ormanufacture shall have the same meaning as respectively assigned to them in theCentral Excise Act, 1944 or the rules made thereunder.

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CHAPTER XX

TRANSITIONAL PROVISIONS

Chapter XX of the CGST Act,2017 covers four sections relating to TRANSITIONAL PROVISIONunder GST. All thesesections from the CGST Act,2017 are available for your ready reference.

Section 139 : Migration ofexistingtaxpayers Section 140 : Transitional arrangements for input tax credit Section 141 :Transitional provisions relating to job work Section 142 :Miscellaneous transitional provisions

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