Section 20 of UTGST Act - Miscellaneous transitional provisions.

 

 

Section 20 of Union Territory Goods and Services Tax Act 2017 - Miscellaneous transitional provisions.

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 any amount 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.
(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.