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Transitional Provisions

If services are received by ISD under the earlier law, can the ITC relating to it be distributed in GST regime?

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Yes, irrespective of whether the invoice(s) relating to such services is received on or after the appointed day – section 162.

Is extension of two months as discussed in section 150, section 151 and section 152 automatic?

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No, it is not automatic. It shall be extended by the competent authority only on sufficient cause being shown.

The supply of goods/services was made under the earlier law but a part of the consideration (say the retention money) is received in GST regime, will tax be payable in GST?

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No, provided the full duty/tax on such supply has already been paid under the earlier law – section 161.

Goods were sent on approval before the appointed day but are returned to the seller after 6 months from the appointed day, will tax be payable in GST?

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Yes, if such goods are liable to tax in GST and the person who rejected or not approved the goods returns it after 6 months (may be extended by 2 months) from the appointed day. This provision is applicable to SGST law only – section 162D

If consideration for a particular supply of services was received under the earlier law and tax on it was paid, will GST also become payable where such supply is made in GST regime?

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No tax shall be payable on supply of goods/services on or after the appointed day if the consideration for it has been received prior to the appointed day and the duty/ tax thereon has already been paid under the earlier law – section 160.

If any goods or services are supplied in GST, in pursuance of contract entered under earlier law, which tax will be payable?

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On such supplies GST will be payable – section 159.

How shall the refund arising from revision of return(s) furnished under the earlier law be dealt in GST?

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The same shall be refunded in accordance with the provisions of the earlier law – section 158.

If the appellate or revisional order goes in favour of the assessee, whether refund will be made in GST? What will happen if the decision goes against the assessee?

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The refund shall be made in accordance with the provisions of the earlier law only. In case any recovery is to be made then it will be made as an arrear of tax under GST.

What will be fate of any appeal or revision relating to a claim of CENVAT/ITC which is pending under the earlier law? If say, it relates to output liability then?

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What will be fate of any appeal or revision relating to a claim of CENVAT/ITC which is pending under the earlier law? If say, it relates to output liability then?

What will be the fate of pending refund of tax/ interest under the earlier law?

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The pending refund claims shall be disposed of in accordance with the provisions of the earlier law – section 154.

What is the time limit for issue of debit/credit note(s) for revision of prices?

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The taxable person may issue the debit/credit note(s) or a supplementary invoice within 30 days of the price revision. In case where the price is revised downwards the taxable person shall be allowed to reduce his tax liability only if the recipient of the invoice or credit note has reduced his ITC corresponding to such reduction of tax liability – section 153.

When tax shall become payable in GST on manufactured goods sent to a Job worker under the earlier law?

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The person returning the goods shall become liable to pay tax if the said goods are liable to tax in GST and are returned after 6 months from the appointed day – proviso to section 152.

If finished goods removed from a factory for carrying out certain processes under earlier law are returned on or after the appointed day, whether GST would be payable?

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No tax will be payable in GST by the manufacturer or by the Job worker where the goods removed prior to the appointed day for carrying out process not amounting to manufacture are returned within 6 months from the appointed day (or extended period of 02 months) – section 152

Can a manufacturer transfer finished goods sent for testing purpose to the premises of any other taxable person?

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Yes, a manufacturer can as per the provisions of the earlier law transfer the said goods to the premises of any registered taxable person on payment of tax or without payment of tax for exports within 6 months or extended period from the appointed day – section 152.

What happens if the job worker does not return the goods within the specified time?

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Tax would be payable by the job worker. Further, the manufacturer will also be liable to pay tax on expiry of the specified time limit – section 150 (1) & section 151(1).

VAT credit was not available on items 'X' & 'Y' as capital goods in the earlier law. Since they are covered in GST, can the registered taxable person claim it now?

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He shall be entitled to credit only when ITC on such goods were admissible under the earlier law and is also admissible in GST. Since on the two items credit was not available under the earlier law, the said person cannot claim it in GST – proviso to section 144(1).

Will the CENVAT/ITC carried forward in the last return prior to GST under earlier law be available as ITC under GST?

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Yes, the registered taxable person shall be entitled to such credit and it will get credited to his electronic credit ledger – section 143.