Miscellaneous transitional provisions Section 142 - GST Ready Reckoner - GST

Miscellaneous transitional provisions Duty payable goods returned In GST Regime [ section 142(1) ] Where any goods on which duty had been paid under the existing law at the time of removal and eligible for refund of the duty paid under the existing law such goods not being remove earlier than six months prior to the appointed day, such goods are returned to any place of business on or after the appointed day , such goods are returned by a unregistered person to the said place of business within in 6 months from the appointed day and such goods are identifiable to the satisfaction of the proper officer: such goods are returned by a registered person , the return of such goods shall be deemed to be a supply. Revision of price - supplementary invoice or debit/credit note raised in GST [ section 142(2) ] Upward Revision Where any person entered into contract prior to the appointed day, the registered person who had removed or provided such goods or services or both the price of any goods or services or both is revised upward on or after the appointed day , supplier shall issue to the recipient a supplementary invoice or debit note , within thirty days of such price revision and for the purposes of this Act such credit note shall be deemed to have been issued in respect of an outward supply made under this Act: The registered person shall be allowed to reduce his tax liability on account 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. Down ward Revision Where any person entered into contract prior to the appointed day, the registered person who had removed or provided such goods or services or both the price of any goods or services or both is revised downwards on or after the appointed day , supplier shall issue to the recipient a credit note , within thirty days of such price revision and for the purposes of this Act such credit note shall be deemed to have been issued in respect of an outward supply made under this Act: The registered person shall be allowed to reduce his tax liability on account 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. Applicable rate at the time of revision [ Circular No. 76/50/2018-GST Dated 31st December, 2018 ] Issue:- In case a debit note is to be issued under section 142(2)(a) of the CGST Act or a credit note under section 142(2)(b) of the CGST Act, what will be the tax rate applicable the rate in the pre-GST regime or the rate applicable under GST? Clarification It may be noted that as per the provisions of section 142(2) of the CGST Act, in case of revision of prices of any goods or services or both on or after the appointed day (i.e., 01.07.2017), a supplementary invoice or debit/credit note may be issued which shall be deemed to have been issued in respect of an outward supply made under the CGST Act. 2. It is accordingly clarified that in case of revision of prices, after the appointed date, of any goods or services supplied before the appointed day thereby requiring issuance of any supplementary invoice, debit note or credit note, the rate as per the provisions of the GST Acts (both CGST and SGST or IGST) would be applicable. File claim of refund file before GST Regime [ section 142(3) ] Filling of Refund Every claim for refund filed by any person before appointed day , for refund of any amount of CENVAT credit, duty, tax, interest or any other amount paid under the existing law , Such refund shall be disposed of in accordance with the provisions of existing law and Any 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 of sub-section (2) of section 11B of the Central Excise Act, 1944. No refund allowed any claim for refund of CENVAT credit is fully or partially rejected, the amount so rejected shall lapse: No refund shall be allowed of any amount of CENVAT credit where the balance of the said amount as on the appointed day has been carried forward under this Act. File claim of refund file in GST Regime [ section 142(4) ] Filling of refund Every claim for refund filed after the appointed day for claiming refund of any duty or tax paid under existing law in respect of goods or services exported before or after the appointed day in respect of the goods or services exported Such claim of refund shall be disposed of in accordance with the provisions of the existing law Refund Not allowed where any claim for refund of CENVAT credit is fully or partially rejected, the amount so rejected shall lapse: No refund shall be allowed of any amount of CENVAT credit where the balance of the said amount as on the appointed day has been carried forward under this Act. Every claim of refund after appointed day[ Section 142(5) ] Every claim of refund filed by a person after the appointed day for refund of tax paid under the 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 in cash, 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 Excise Act, 1944. Proceeding of Appeals[ Section 142(6) ] In case of appeal file and credit found to be admissible every proceeding of appeal, review or reference relating to a claim for CENVAT credit initiated whether before, on or after the appointed day under the existing law shall be disposed as per provisions of existing law , and if any amount of credit found 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 the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 Admissible credit not allowed The amount rejected, if any, shall not be admissible as input tax credit under this Act: No refund shall be allowed of any amount of CENVAT credit where the balance of the said amount as on the appointed day has been carried forward under this Act; In case of appeal filed credit become recoverable every proceeding of appeal, review or reference relating to recovery of CENVAT credit 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 credit 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 tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. Appeals towards output tax liability payable [ Section 143(7) ] Every proceeding of appeal, review or reference relating to a output tax liability whether before, on or after the appointed day will processed as per the Existing laws If appeal is in favor of the tax payer and any amount found to be admissible to the claimant shall be refunded to him in cash the amount rejected, if any, shall not be admissible as input tax credit under this Act. If appeal is not in favor of the tax payer and if any amount becomes recoverable as a result of such appeal, be recovered as an arrear of duty or tax under this Act such recovered amount shall not be admissible as input tax credit under this Act Tax liability towards old transactions[ Section 142(8) ] In pursuance of an assessment or adjudication proceedings instituted if any amount of tax, interest, fine or penalty becomes recoverable from the person, If assessment or adjudication proceedings is not in favor of the tax payer the same shall, unless recovered under the existing law, will be processed as arrears under GST the amount so recovered shall not be admissible as input tax credit under this Act; If assessment or adjudication proceedings is in favor of the tax payer then such refundable amount shall be refunded in cash. Such refund shall not be admissible as input tax credit under this Act. Revised Return , furnished under the existing law [ Section 142(9) ] Return filed prior to the appointed day and Same return modified / revised after the appointed day but within the time limit specified for such revision under the existing law Pursuant to such revision any amount is found to be recoverable or any amount of CENVAT credit is found to be inadmissible, under the existing law Shall be recovered as an arrear of tax under this Act the amount so recovered shall not be admissible as input tax credit under this Act; any amount is found to be refundable or CENVAT credit is found to be admissible to any taxable person, the same shall be refunded to him in cash under the existing law the amount rejected, if any, shall not be admissible as input tax credit under this Act. Old contracts[ Section 142(10) ] The goods or services or both supplied on or after the appointed day in pursuance of a contract entered into prior to the appointed day Such Supplies liable to GST. Supply of goods or services under VAT Act Services Act 1994[ Section 142(11) ] Notwithstanding anything contained in section 12, no tax shall be payable on goods under this Act to the extent the tax was leviable on the said goods under the Value Added Tax Act of the State; Notwithstanding anything contained in section 13, no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under services Tax 1994 where tax was paid on any supply both under the Value Added Tax Act and under Services Tax act, 1994, tax shall be leviable under this Act and the taxable person shall be entitled to take credit of value added tax or service tax paid under the existing law to the extent of supplies made after the appointed day and such credit shall be calculated in such manner as may be prescribed. Goods sent on sale or approval basis[ Section 142(12 ) ] Goods sent on sale or approval basis not earlier than six months before the appointed day and Such goods rejected or not approved by the buyer If such goods returned back within 6 months after the appointment day then no taxes are payable under this act. If such goods returned after 6 month then tax shall be payable under this act by the person returning the goods, if such goods liable to tax. If such good not return within 6 month then tax shall be payable under this act by the who has sent the goods on approval basis, if such goods liable to tax. Further Extension of time period of the said period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months: Tax deduction at source[ section 142(13) ] If TDS is to be recovered on sale of any goods under any state of UT/ VAT prior to appointed day If payment is made after appointed day then taxes as per Sec 51 is not applicable