Sections 129, 140 and 143: CGST Amendment Act, 2018 Explained
Sections 27, 28 and 29 of the Central Goods and Services Tax (Amendment) Act, 2018 amended section 129 (detention and seizure), section 140 (transitional input tax credit) and section 143 (job work) of the Central Goods and Services Tax Act, 2017.
This page records and explains the 2018 amendments. Some provisions have subsequently been amended. In particular, the detention and seizure mechanism in section 129 was substantially recast with effect from 1 January 2022. Therefore, the 2018 wording should not be read as the complete current text of section 129.
Amendment to Section 129 of the CGST Act, 2017
Section 129 deals with detention, seizure and release of goods and conveyances in transit where transportation or storage while in transit contravenes the CGST Act or the rules.
In section 129 of the principal Act, in sub-section (6), the words "seven days" were substituted by the words "fourteen days".
The 2018 amendment therefore enlarged the period then appearing in section 129(6) from seven days to fourteen days. This historical amendment was brought into force from 1 February 2019. The later Finance Act, 2021 recast section 129, and the present section 129(6) uses a different mechanism and a fifteen-day period for payment of penalty before sale or disposal action, subject to the statutory provisos.
Amendment to Section 140: Transitional Input Tax Credit
Section 140 is a transitional provision. It governs specified credits arising under the pre-GST indirect tax laws and their transition into the GST electronic credit ledger, subject to the statutory conditions.
The amendment was made retrospectively with effect from 1 July 2017. In section 140(1), the words "of eligible duties" were inserted after "CENVAT credit". Explanation 1 was amended to cover sub-section (1), clause (iv) was omitted, Explanation 2 was similarly amended to cover sub-sections (1) and (5), its clause (iv) was omitted, and Explanation 3 was inserted.
Meaning of "eligible duties"
The expression limits transitional credit to the duties specifically identified by section 140 and its Explanations. The 2018 amendment made clear that section 140(1) did not permit transition of every form of legacy credit merely because it appeared in a pre-GST return.
Explanation 3 and exclusion of cess
Explanation 3 clarifies that "eligible duties and taxes" excludes a cess not specified in Explanation 1 or Explanation 2, and also excludes a cess collected as additional duty of customs under section 3(1) of the Customs Tariff Act, 1975. The amendment was expressly retrospective from 1 July 2017.
Section 140 was later amended by the Finance Act, 2020, including insertion of the words "within such time and" in sub-section (1). For any live transitional-credit dispute, the current consolidated provision, relevant rules, notifications and binding judicial decisions should therefore be checked rather than relying only on the 2018 amendment text.
Amendment to Section 143: Job Work Procedure
Section 143 permits a registered person, referred to as the principal, subject to prescribed conditions, to send inputs or capital goods to a job worker without payment of tax. Ordinarily, inputs must be brought back or supplied within one year and qualifying capital goods within three years.
A further proviso was inserted in section 143(1)(b), allowing the Commissioner, on sufficient cause being shown, to extend the one-year period for inputs by a further period not exceeding one year and the three-year period for capital goods by a further period not exceeding two years.
This is a relief provision for cases where the normal job-work period is insufficient. The extension is not automatic: sufficient cause must be shown and the Commissioner must exercise the statutory power to grant the extension.
Practical Summary of the 2018 Amendments
| Provision | 2018 amendment | Practical effect |
|---|---|---|
| Section 129(6) | Seven days changed to fourteen days | Extended the then-applicable period under the detention/seizure provision. The provision was later recast. |
| Section 140 | "Eligible duties" restriction and Explanation 3 inserted retrospectively | Clarified the scope of transitional CENVAT credit and excluded unspecified cesses. |
| Section 143(1) | Commissioner empowered to extend job-work periods | Up to one additional year for inputs and two additional years for capital goods, on sufficient cause. |
Official GST Resources
For the latest statutory text and amendment history, refer to the official CBIC Tax Information Portal, the CBIC GST Acts page, the CBIC GST Rules page and the GST Council.
Disclaimer: This article is for legal and tax information. Statutory provisions, notifications and case law may change. Verify the applicable law for the relevant tax period and facts.