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 19, verbatim (show)
Section 19. Transitional provisions relating to job work.
(1) Where any inputs received at a place of business had been desptached as such or desptached after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purpose in accordance with the provisions of existing law prior to the appointed day and such inputs are returned to the said place on or after the appointed day, no tax shall be payable if such inputs, after completion of the job work or other wise, are returned to the said place within six months from the appointed day:
Provided that the 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 if such inputs are not returned within a period of six months or the extended period from the appointed day, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142 of the Central Goods and Services Tax Act.
(2) Where any semi-finished goods had been despatched from any place of business to any other premises for carrying out certain manufacturing processes in accordance with the provisions of existing law prior to the appointed day and such goods (hereinafter in this section referred to as ''the said goods'') are returned to the said place on or after the appointed day, no tax shall be payable if the said goods, after undergoing manufacturing processes or otherwise, are returned to the said place within six months from the appointed day:
Provided that the 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 if the said goods are not returned within a period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142 of the Central Goods and Services Tax Act:
Provided also that the person despatching the goods may, in accordance with the provisions of the existing law, transfer the said goods to the premises of any registered person for the purpose of supplying therefrom on payment of tax in India or without payment of tax for exports within six months or the extended period, as the case may be, from the appointed day.
(3) Where any goods had been despatched from the place of business without payment of tax for carrying out tests or any other process to any other premises, whether registered or not, in accordance with the provisions of existing law prior to the appointed day and such goods are returned to the said place of business on or after the appointed day, no tax shall be payable if the said goods, after undergoing tests or any other process, are returned to such place within six months from the appointed day:
Provided that the 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 if the said goods are not returned within the period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142 of the Central Goods and Services Tax Act:
Provided also that the person despatching the goods may, in accordance with the provisions of the existing law, transfer the said goods from the said other premises on payment of tax in India or without payment of tax for exports within six months or the extended period, as the case may be, from the appointed day.
(4)The tax under sub-sections (1), (2) and (3) shall not be payable only if the person despatching the goods and the job worker declare the details of the inputs or goods held in stock by the job worker on behalf of the said person on the appointed day in such form and manner and within such time as may be prescribed.
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.
No-tax return under subsection1 19(1)
Questions to answer on the file21 questions
No-tax return under subsection2 19(2)
Questions to answer on the file20 questions
No-tax return under subsection3 19(3)
Questions to answer on the file21 questions
Extension authority and maximum 19(1)–(3) first provisos
Questions to answer on the file4 questions
Stock declarations 19(4)
Questions to answer on the file6 questions
Credit identity on absent return 19(1)–(3) second provisos
Questions to answer on the file4 questions
Credit identity on late return 19(1)–(3) second provisos
Questions to answer on the file3 questions
Recovery procedure 19(1)–(3) second provisos
Questions to answer on the file1 question
Permitted transfer under subsection2 19(2) third proviso
Questions to answer on the file8 questions
Permitted transfer under subsection3 19(3) third proviso
Questions to answer on the file7 questions
Credit consequence after permitted transfer 19(2)–(4)
Questions to answer on the file2 questions
Declaration where holder is other premises 19(2)–(4)
Questions to answer on the file2 questions
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 142 of the CGST Act, 2017 | this provision requires Section 142 of the CGST Act, 2017 | 19(1)–(3) "clause (a) of sub-section (8) of section 142" |
Circulars and notifications
No circular or notification in the CBIC repository is recorded as citing this section.
Unsettled questions
The words of section 19 do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.
- What standard determines whether the shown cause is sufficient for the Commissioner to extend this identified UT transitional period, where the provision supplies no mechanical criterion?
- What standard determines whether the shown cause is sufficient for the Commissioner to extend this identified UT transitional period, where the provision supplies no mechanical criterion?
- What standard determines whether the shown cause is sufficient for the Commissioner to extend this identified UT transitional period, where the provision supplies no mechanical criterion?
- What standard determines whether the shown cause is sufficient for the Commissioner to extend this identified UT transitional period, where the provision supplies no mechanical criterion?
- Which input tax credit does the second proviso make liable to be recovered where the goods are not returned within the period: the credit of the duty or tax paid on those goods under the existing law, or the credit carried forward into the electronic credit ledger on the appointed day? Nothing earlier in the sub-section mentions any credit. Clauses (62) and (63) of section 2, which define "input tax" and "input tax credit" for this Act, are the starting point and are to be read before the position is settled, because on their face they confine input tax to tax charged under the Goods and Services Tax Acts. The same credit-identity question applies to UTGST section 19(1)–(3), retaining its VAT/entry-tax and UTGST context rather than assuming CENVAT credit.
- Which input tax credit does the second proviso make liable to be recovered where the goods are not returned within the period: the credit of the duty or tax paid on those goods under the existing law, or the credit carried forward into the electronic credit ledger on the appointed day? Nothing earlier in the sub-section mentions any credit. Clauses (62) and (63) of section 2, which define "input tax" and "input tax credit" for this Act, are the starting point and are to be read before the position is settled, because on their face they confine input tax to tax charged under the Goods and Services Tax Acts. The same credit-identity question applies to UTGST section 19(1)–(3), retaining its VAT/entry-tax and UTGST context rather than assuming CENVAT credit.
- Where the manufacturer transfers the said goods as the third proviso permits instead of returning them, the goods are not returned within the period and the second proviso reads on the facts. Does the credit nevertheless remain liable to be recovered, or does the permitted transfer answer the second proviso? The sub-section says neither. The same permitted-transfer versus non-return question applies to the person dispatching goods under UTGST section 19(2) and the permitted transfer under section 19(3); the CGST manufacturer and UT dispatching person remain distinct actors.
- Whose declaration is required in those cases? The same other-premises declaration question applies to UTGST section 19(4), which names the person dispatching the goods and the job worker; this does not replace the CGST manufacturer with another actor.
See also
- Section 142 of the CGST Act, 2017: miscellaneous transitional provisions
- Section 18 of the UTGST Act, 2017: transitional arrangements for input tax credit
- Section 20 of the UTGST Act, 2017: miscellaneous transitional provisions
References
- Central Board of Indirect Taxes and Customs. "Section 19. Transitional provisions relating to job work". Union Territory Goods and Services Tax Act, 2017, CBIC tax information portal. Retrieved 17 September 2026.
External links
- UTGST Act, 2017, Section 19 on the CBIC tax information portal