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Section 142 of the CGST Act, 2017

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GST›CGST Act, 2017›Chapter XX, Transitional Provisions

At a glance

Entitlement and conditions

  • 142(1)–(2)Identifiable duty-paid goods removed within six months before the appointed day and returned by an unregistered person within six months after it have a refund route; registered-person returns are supplies. Old-contract price increases require a supplementary invoice or debit note within thirty days; decreases permit a credit note within thirty days, with tax reduction conditional on corresponding recipient credit reduction. The documents are treated as outward-supply documents.
  • 142(10)–(11)Later supplies under old contracts fall under this Act except as the Chapter provides. Tax already leviable under State VAT or service-tax law qualifies the GST charge notwithstanding sections 12 and 13. Where both earlier taxes were paid, GST applies with prescribed credit for the post-appointed-day portion.
  • 142(12)Goods sent on approval within six months before the appointed day and rejected or unapproved must return within six months after it for the tax-free return route; sufficient cause permits up to two further months. Late return or non-return of taxable goods triggers the stated returning-person or sender liability.
  • 142(13) and ExplanationNo section 51 deduction applies to later payment where the goods sale required earlier VAT deduction and its invoice preceded the appointed day. The specified capital-goods, CENVAT, dealer and manufacture terms take Central Excise meanings.

Procedure, powers and definitions

  • 142(3)–(5)Earlier-law refund claims, export-related claims and tax on unprovided services follow earlier law. The specified general and unprovided-service refunds are cash refunds overriding contrary earlier-law provisions except section 11B(2). Rejected CENVAT claims lapse, and carried-forward balances cannot be refunded under the specified general or export routes.
  • 142(6)–(7)Earlier-law credit and output-duty appeals, reviews and references remain governed by earlier law. Admissible refunds are cash, preserving section 11B(2); rejected amounts cannot become GST credit, and carried-forward CENVAT balances cannot be refunded under the credit-claim route. Recoverable amounts not already recovered become GST arrears without credit.
  • 142(8)–(9)Earlier-law assessment or adjudication dues and adverse revised-return amounts become GST arrears unless already recovered, without credit. Refunds from assessment or timely revised returns are cash under earlier law, overriding contrary provisions except section 11B(2); rejected amounts cannot become GST credit.
  • 142The law does not settle proof of recipient credit reduction, the deeming effect of a late debit document, or whether the approval-goods default provisions use the extended period.

Transitional rules govern returned goods, price revisions, earlier-law refunds and proceedings, old contracts and approval sales. Cash-refund rules preserve section 11B(2) while overriding other contrary earlier-law provisions. The Chapter qualifies tax on later supplies under old contracts; specific rules override ordinary time-of-supply and deduction provisions. Refund, credit and recovery conditions depend on the particular transitional category.[1]

Text

The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.

Section 142, verbatim (show)

* Section 142. Miscellaneous transitional provisions.-

(1) Where any goods on which duty, if any, had been paid under the existing law at the time of removal thereof, not being earlier than six months prior to the appointed day, are returned to any place of business on or after the appointed day, the registered person shall be eligible for refund of the duty paid under the existing law where such goods are returned by a person, other than a registered person, to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of the proper officer:

Provided that if the said goods are returned by a registered person, the return of such goods shall be deemed to be a supply.

(2) (a) where, in pursuance of a contract entered into prior to the appointed day, the price of any goods or services or both is revised upwards on or after the appointed day, the registered person who had removed or provided such goods or services or both shall issue to the recipient a supplementary invoice or debit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act such supplementary invoice or debit note shall be deemed to have been issued in respect of an outward supply made under this Act;

(b) where, in pursuance of a contract entered into prior to the appointed day, the price of any goods or services or both is revised downwards on or after the appointed day, the registered person who had removed or provided such goods or services or both may issue to the recipient a credit note, containing such particulars as may be prescribed, 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:

Provided that 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.

(3) Every claim for refund filed by any person before , on or after the appointed day, for refund 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 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 (1 of 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 credit where the balance of the said amount as on the appointed day has been carried forward under this Act.

(4) Every claim for refund filed after the appointed day for refund of any duty or tax paid 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 credit where 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 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 (1 of 1944).

(6) (a) 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 of in accordance with the provisions of existing law, and 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 (1 of 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 the balance 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 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.

(7) (a) every proceeding of appeal, review or reference relating to any output duty or tax 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 any amount 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 this Act 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 tax 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 any amount 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 (1 of 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 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;

(b) 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 refundable to the taxable person, the same shall be refunded to him in cash under the said law, notwithstanding anything to the contrary contained in the said law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 (1 of 1944) and 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 appointed day and if, pursuant to such revision, any amount is found to be recoverable or any amount of CENVAT credit is found to be inadmissible, 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;

(b) where any return, furnished under the existing law, is revised after the appointed day but within the time limit specified for such revision under the existing law and if, pursuant to such revision, 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, notwithstanding anything to the contrary contained in the said law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 (1 of 1944) and the amount rejected, 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 supplied on 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 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;

(b) 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 Chapter V of the Finance Act, 1994 (32 of 1994);

(c) where tax was paid on any supply both under the Value Added Tax Act and under Chapter V of the Finance Act, 1994 (32 of 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.

(12) Where any goods sent on approval basis, not earlier than six months before the appointed day, are rejected or not approved by the buyer and returned to the seller on or after the appointed day, no tax shall be payable thereon if such goods are returned within six months from the appointed day:

Provided that 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:

Provided further that the tax shall be payable by the person returning the goods if such goods are liable to tax under this Act, and are returned after a period specified in this sub-section:

Provided also that tax shall be payable by the person who has sent the goods on approval basis if such goods are liable to tax under this Act, and are not returned within a period specified in this sub-section.

(13) Where a supplier has made any sale of goods in respect of which tax was required to be deducted at source under any law of a State or Union territory relating to Value Added Tax and has also issued an invoice for the same before the appointed day, no deduction of tax at source under section 51 shall be made by the deductor under the said section where payment 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" , or "manufacture" shall have the same meaning as respectively assigned to them in the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder. *Enforced w.e.f. 1st July, 2017.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.

Scope the section as a whole

Questions to answer on the file1 question
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Goods returned to a place of business 142(1) and its proviso

Questions to answer on the file9 questions
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The price revised upwards 142(2)(a)

Questions to answer on the file9 questions
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The price revised downwards and the credit note 142(2)(b) and its proviso

Questions to answer on the file10 questions
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Claims for refund of CENVAT credit, duty, tax, interest or any other amount 142(3) and its two provisos

Questions to answer on the file8 questions
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Claims for refund on goods or services exported 142(4) and its two provisos

Questions to answer on the file6 questions
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Claims for refund of tax paid on services not provided 142(5)

Questions to answer on the file4 questions
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Appeal, review or reference relating to CENVAT credit 142(6)(a) with its proviso, and 142(6)(b)

Questions to answer on the file8 questions
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Appeal, review or reference relating to an output duty or tax liability 142(7)(a) and 142(7)(b)

Questions to answer on the file6 questions
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Assessment or adjudication proceedings 142(8)(a) and 142(8)(b)

Questions to answer on the file5 questions
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Returns revised after the appointed day 142(9)(a) and 142(9)(b)

Questions to answer on the file6 questions
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Supplies under a contract entered into before the appointed day 142(10)

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Tax leviable under the Value Added Tax Act or under Chapter V of the Finance Act, 1994 142(11)(a), (b) and (c)

Questions to answer on the file6 questions
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Goods sent on approval basis 142(12) and its three provisos

Questions to answer on the file12 questions
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Deduction of tax at source on a sale invoiced before the appointed day 142(13)

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The expressions the Explanation borrows the Explanation to section 142

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Amendment history

The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]

Amendments to section 142 as footnoted in the CBIC text
NoteChangeInstrumentEffective from
Enforced the section—1st July, 2017
Provisions connected to Section 142
ProvisionConnectionWords that tie them
Section 12Section 12 overridden by 142(11)(a)142(11)(a) "notwithstanding anything contained in section 12"
Section 13Section 13 overridden by 142(11)(b)142(11)(b) "notwithstanding anything contained in section 13"
Section 51142(13) exception in Section 51142(13) "no deduction of tax at source under section 51 shall be made by the deductor under the said section"
Section 2142(1) defined by Section 2 clause (10)142(1) "on or after the appointed day", the appointed day being the day section 2 defines in clause (10)
Section 2142(3) defined by Section 2 clause (48)142(3) "paid under the existing law", the existing law being what section 2 defines in clause (48)

Circulars and notifications

Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.

Circulars (6)

NumberDateSubject
Circular No. 182/14/2022-GST10 November 2022Guidelines for verifying the Transitional Credit in light of the order of the Hon’ble Supreme Court in the Union of India vs. Filco Trade Centre Pvt. Ltd., SLP(C) No. 32709-32710/2018, order dated 22.07.2022 & 02.09.2022
Circular No. 125/44/2019-GST18 November 2019Seeks to clarify the fully electronic refund process through FORM GST RFD-01 and single disbursement. amended by a later instrument
Circular No. 76/50/2018-GST31 December 2018Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the CGST Act; rate of tax in case of debit notes / credit notes issued under section 142(2) of the CGST Act; applicability of notification No. 50/2018-Central Tax; valuation methodology in case of TCS under Income Tax Act and definition of owner of goods) related to GST
Circular No. 42/16/2018-GST13 April 2018clarifying the procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit.
Circular No. 37/11/2018-GST15 March 2018Clarifications on exports related refund issues. Rescinded vide Circular No. 125/44/2019 - GST dated 18.11.2019. rescinded by a later instrument
Circular No. 3/03/2017-GST5 July 2017Proper officer relating to provisions other than Registration and Composition under the Central Goods and Services Tax Act, 2017-Reg.

Notifications (1)

NumberDateSubject
Notification No. 10/2017-Central Tax28 June 2017Seeks to amend CGST Rules notification no 3/2017-Central Tax dt 19.06.2017 amended by a later instrument

Unsettled questions

The words of section 142 do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.

  1. How is the supplier to establish that the recipient has reduced his input tax credit corresponding to the reduction of tax liability, when the Act gives him no means of seeing the recipient's ledger? The proviso to section 142(2)(b) bars the reduction on a fact that lies entirely in the recipient's records and says nothing about how the supplier is to prove it. This is the same silence the registry already carries for the proviso to section 34(2), and it is cited here rather than answered a second time.
  2. Where the supplementary invoice or debit note required by clause (a) of sub-section (2) is issued after the thirty days that clause allows, does the deeming still operate, so that the document is treated as issued in respect of an outward supply made under this Act? The clause states the obligation, the period and the deeming in one breath and nowhere says whether the deeming is conditional on the period being kept.
  3. Do the words "a period specified in this sub-section", used in the second and third provisos to sub-section (12), mean the six months in the main limb alone, or the six months as extended by the Commissioner under the first proviso? The first proviso extends "the said period of six months" but the two provisos that follow speak of a period "specified in this sub-section", and the sub-section itself specifies only six months.

See also

References

  1. Central Board of Indirect Taxes and Customs. "Section 142. Miscellaneous transitional provisions". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.

External links