Chapter 20

Section 139 – Migration of Existing Taxpayers

1. Every person registered under existing laws with a valid PAN is issued provisional GST registration from the appointed day.
2. Final certificate is issued subject to prescribed conditions.
3. If a person was not liable to register under section 22 or 24, provisional registration is deemed never issued if cancelled upon application.

 

Section 140 – Transitional Arrangements for Input Tax Credit (ITC)

1. Registered persons (other than those under section 10) can claim CENVAT credit carried forward under the old law in their electronic credit ledger, subject to prescribed conditions.
2. Credit cannot be claimed if:
   • It’s not allowed under GST.
   • All previous returns (6 months prior) are not filed.
   • Credit relates to exempted goods/services under prior notifications.
3. Credit can also be claimed on unavailed CENVAT for capital goods, provided it is eligible under both old law and GST.
4. Persons previously dealing with exempted goods/services, first/second stage dealers, registered importers, or depots can claim credit on inputs held in stock under conditions:
   • Used for taxable supplies under GST.
   • Invoice available within 12 months prior.
   • Supplier not eligible for abatement.
5. Credit for services received before the appointed day via Input Service Distributor is eligible even if invoices are received after the appointed day.
6. Credit for persons with centralized registration under old law can be transferred among GST registrations with same PAN.
7. Reclaimed credit if previously reversed due to non-payment, after making payment within 3 months.
8. Definitions:
   • Eligible duties: Excise duties, additional duties, National Calamity Contingent Duty, Customs duties on inputs/stock.
   • Eligible duties & taxes: Includes service tax for inputs/services received on or after appointed day.

Section 141 – Transitional Provisions for Job Work

1. Inputs sent to job worker before appointed day:
   • No tax if returned within 6 months (extendable by 2 months).
   • If delayed, ITC is recovered under Section 142(8).
2. Semi-finished goods moved for manufacturing processes: Same 6-month rule applies.
3. Excisable goods removed for testing or other processes: Same 6-month rule applies.
4. Tax exempt if manufacturer & job worker declare stock on the appointed day in prescribed manner.

Section 142 – Miscellaneous Transitional Provisions

1. Goods returned within 6 months (other than by registered persons) are eligible for refund of duty paid under old law.
2. Price revision under old contracts:
   • Upwards: Issue supplementary invoice/debit note within 30 days.
   • Downwards: Issue credit note within 30 days; recipient must adjust ITC.
3. Refund claims of CENVAT credit/duty/tax/interest under old law are paid in cash, except where credit is carried forward under GST.
4. Appeals, review, references under old law:
   • Refunds given in cash.
   • Recoveries treated as arrears under GST; not admissible as ITC.
5. Returns revised after appointed day:
   • Recoveries → arrears under GST, not eligible as ITC.
   • Refunds → paid in cash.
6. Supplies under contracts before appointed day are taxable under GST.
7. Tax paid under VAT or service tax:
   • No GST payable to extent already taxed.
   • If both VAT & service tax paid, GST is levied, and credit of old tax allowed for post-appointed day supplies.
8. Goods on approval basis returned within 6 months → no GST; extendable 2 months.
   • Tax payable if returned late or not returned.
9. TDS under old VAT law: No TDS under GST if payment to supplier made after appointed day.

Definitions: Terms like “capital goods,” “CENVAT credit,” “first/second stage dealer,” and “manufacture” retain meaning from Central Excise Act, 1944.