Miscellaneous transitional provisions - Section 20
20.
(1) Where any goods on which tax, if any, had been paid
under the existing law at the time of sale 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 tax 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 is revised upwards on or after the
appointed day, the registered person who had sold such goods 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 is revised downwards on or after the
appointed day, the registered person who had sold such goods 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 input tax credit, 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 refunded to him in cash in accordance with the
provisions of the said law:
Provided that where any claim for refund of the
amount of input tax credit is fully or partially rejected, the amount so
rejected shall lapse:
Provided further that no refund shall be allowed of any
amount of input tax 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 tax paid under the existing law in respect of the goods exported
before or after the appointed day shall be disposed of in accordance with the
provisions of the existing law:
Provided that where any for refund of input tax
credit is fully or partially rejected, the amount so rejected shall lapse:
Provided further that no refund shall be allowed of any amount of input tax
credit where the balance of the said amount as on the appointed day has been carried
forward under this Act.
(5)
(a) Every proceeding of appeal, revision, review or
reference relating to a claim for input tax credit 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 of credit
found to be admissible to the claimant shall be refunded to him in cash in
accordance with the provisions of the existing law 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
input tax 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, revision, review or reference
relating to recovery of input tax credit 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 anyamount of credit becomes
recoverable as a result of such appeal, revision, 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.
(6)
(a) Every proceeding of appeal, revision, review or
reference relating to any output 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, revision, review or reference, the same
shall, unless recovered under the existing law, be recovered as an arrear of
tax under this Act and amount so recovered shall not be admissible as input tax
credit under this Act.
(b) Every proceeding of appeal, revision, review or
reference relating to any output 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 in accordance with
the provisions of the existing law and the amount rejected, if any, shall not
be admissible as input tax credit under this Act.
(7)
(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 and the amount rejected, if any, shall not be admissible as input tax
credit under this Act.
(8)
(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 input tax 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 input tax credit is found to be admissible to any
taxable person, the same shall be refunded to him in cash under the existing
law and the amount rejected, if any, shall not be admissible as input tax
credit under this Act.
(9) 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.
(10)
(a) Notwithstanding anything contained in section 12 of the
Central Goods and Services Tax Act, no tax shall be payable on goods under this
Act to the extent the tax was leviable on the said goods under the existing
law.
(b) Notwithstanding anything contained in section 13 of the
Central Goods and Services Tax Act, 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.
(c) Where tax was paid on any supply, both under any
existing law relating to sale of goods and under Chapter V of the Finance 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.
(11) 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 the 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 the period specified in this sub-section.
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 the 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 the period
specified in this sub-section.
(12) Where a supplier has made any sale of goods in respect
of which tax was required to be deducted at source under any existing law
relating to sale of goods and has also issued an invoice for the same before the
appointed day, no deduction of tax at source under section 51 of the Central
Goods and Services Tax Act, as made applicable to this Act, 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
expression ‘‘capital goods’’ shall have the same meaning as assigned to it in
any existing law relating to sale of goods.