TRANSITIONAL PROVISIONS
139. Migration of existing tax payers
(1) On and from the appointed day, every person registered under
any of the existing laws and having a valid Permanent Account Number shall
be issued a certificate of registration on provisional basis, subject to such
conditions and in such form and manner as may be prescribed, which unless
replaced by a final certificate of registration under sub-section (2), shall be
liable to be cancelled if the conditions so prescribed are not complied with.
(2) The final certificate of registration shall be granted in such form
and manner and subject to such conditions as may be prescribed.
(3) The certificate of registration issued to a person under sub-section
(1) shall be deemed to have not been issued if the said registration is cancelled
in pursuance of an application filed by such person that he was not liable to
registration under section 22 or section 24.
140. Transitional Arrangements for input tax credit.
(1) A registered person, other than a person opting to pay tax
under section 10, shall be entitled to take, in his electronic credit ledger,
credit of the amount of Value Added Tax, and Entry Tax, if any, carried forward
in the return relating to the period ending with the day immediately preceding
the appointed day, furnished by him under the existing law in such manner
as may be prescribed :
Provided that the registered person shall not be allowed to take credit
in the following circumstances, namely : –
(i) where the said amount of credit is not admissible as input tax
credit under this Act ; or
(ii) where he has not furnished all the returns required under the
existing law for the period of six months immediately preceding the
appointed date ; or
(iii) where the said amount of credit relates to units not entitled to
claim set-off under rule 79 of the Maharashtra Value Added Tax
Rules, 2005 :
Provided further that so much of the said credit as is attributable
to any claim related to section 3, sub-section (3) of section 5, section 6,
section 6A or sub-section (8) of section 8 of the Central Sales Tax Act,
1956 (74 of 1956)which is not substantiated in the manner, and within the period, prescribed in rule 12 of the Central Sales Tax (Registration and Turnover)
Rules, 1957 shall not be eligible to be credited to the electronic credit
ledger :
Provided also that an amount equivalent to the credit specified in
the second proviso shall be refunded under the existing law when the
said claims are substantiated in the manner prescribed in rule 12 of the
Central Sales Tax (Registration and Turnover) Rules, 1957
(2) A registered person, other than a person opting to pay tax under
section 10, shall be entitled to take, in his electronic credit ledger, credit of
the unavailed input tax credit in respect of capital goods, not carried forward
in a return, furnished under the existing law by him, for the period ending
with the day immediately preceding the appointed day in such manner as
may be prescribed :
Provided that the registered person shall not be allowed to take credit
unless the said credit was admissible as input tax credit under the existing
law and is also admissible as input tax credit under this Act.
Explanation.––For the purposes of this section, the expression
“unavailed input tax credit” means the amount that remains after subtracting
the amount of input tax credit already availed in respect of capital goods by
the taxable person under the existing law from the aggregate amount of input
tax credit to which the said person was entitled in respect of the said capital
goods under the existing law.
(3) A registered person, who was not liable to be registered under the
existing law or who was engaged in the sale of exempted goods or tax free
goods, by whatever name called,or goods which have suffered tax at the first
point of their sale in the State and the subsequent sales of which are not
subject to tax in the State under the existing law but which are liable to tax
under this Act or where the person was entitled to the credit of input tax at
the time of sale of goods, if any, shall be entitled to take, in his electronic
credit ledger, credit of the value added tax and entry tax in respect of inputs
held in stock and inputs contained in semi-finished or finished goods held in
stock on the appointed day subject to the following conditions, namely :––
(i) such inputs or goods are used or intended to be used for making
taxable supplies under this Act ;
(ii) the said registered person is eligible for input tax credit on such
inputs under this Act ;
(iii) the said registered person is in possession of invoice or other
prescribed documents evidencing payment of tax under the existing law
in respect of such inputs ; and
(iv) such invoices or other prescribed documents were issued not
earlier than twelve months immediately preceding the appointed day :
Provided that where a registered person, other than a manufacturer
or a supplier of services, is not in possession of an invoice or any other
documents evidencing payment of tax in respect of inputs, then, such
registered person shall, subject to such conditions, limitations and
safeguards as may be prescribed, including that the said taxable person
shall pass on the benefit of such credit by way of reduced prices to the
recipient, be allowed to take credit at such rate and in such manner as
may be prescribed.
(4) A registered person, who was engaged in the sale of taxable goods as
well as exempted goods or tax free goods, by whatever name called, under
the existing law but which are liable to tax under this Act, shall be entitled
to take, in his electronic credit ledger,-
(a) the amount of credit of the value added tax and entry tax, if any,
carried forward in a return furnished under the existing law by him in
accordance with the provisions of sub-section (1) ; and
(b) the amount of credit of the value added tax and entry tax, if any,
in respect of inputs held in stock and inputs contained in semi-finished
or finished goods held in stock on the appointed day, relating to such
exempted goods or tax free goods, by whatever name called, in accordance
with the provisions of sub-section (3).
(5) A registered person shall be entitled to take, in his electronic credit
ledger, credit of value added tax and entry tax, if any, in respect of inputs
received on or after the appointed day but the tax in respect of which has
been paid by the supplier under the existing law, subject to the condition
that the invoice or any other tax paying document of the same was recorded
in the books of account of such person within a period of thirty days from the
appointed day :
Provided that the period of thirty days may, on sufficient cause being
shown, be extended by the Commissioner for a further period not exceeding
thirty days :
Provided further that the said registered person shall furnish a
statement, in such manner as may be prescribed, in respect of credit that has
been taken under this sub-section.
(6) A registered person, who was either paying tax at a fixed rate or
paying a fixed amount in lieu of the tax payable under the existing law shall
be entitled to take, in his electronic credit ledger, credit of value added tax
in respect of inputs held in stock and inputs contained in semi-finished or
finished goods held in stock on the appointed day subject to the following
conditions, namely :––
(i) such inputs or goods are used or intended to be used for making
taxable supplies under this Act ;
(ii) the said registered person is not paying tax under section 10 ;
(iii) the said registered person is eligible for input tax credit on
such inputs under this Act ;
(iv) the said registered person is in possession of invoice or other
prescribed documents evidencing payment of tax under the existing law
in respect of inputs ; and
(v) such invoices or other prescribed documents were issued not
earlier than twelve months immediately preceding the appointed day.
(7) The amount of credit under sub-sections (3), (4) and (6) shall be
calculated in such manner as may be prescribed.
141. Transitional provisions relating to jobwork .
(1) Where any inputs received at a place of business had been
despatched as such or despatched after being partially processed to a
jobworker 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
jobwork 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 such inputs 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.
(2) Where any semi-finished goods had been despatched from the 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 (hereafter in this sub-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 :
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 the period
specified in this sub-section. (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 :
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 the period specified in this sub-section. (4) The tax under sub-sections (1), (2) and (3) shall not be payable, only if the person despatching the goods and the jobworker declare the details of the inputs or goods held in stock by the jobworker on behalf of the said person on the appointed day in such form and manner and within such time as may be prescribed.
142. Miscellaneous transitional provis ions.
(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 claim 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) Notwithstanding anything to the contrary contained in this Act, any
amount of input tax credit reversed prior to the appointed day shall not be
admissible as input tax credit under this Act.
(6) (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.
(7) (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 the 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.
(8) (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.
(9) (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.
(10) 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.
(11) (a) notwithstanding anything contained in section 12, no tax shall
be payable on goods under this Act to the extent the tax was leviable on the
said goods under the Maharashtra Value Added Tax Act, 2002 (Ma h .IX of2005);
(b) notwithstanding anything contained in section 13, 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 (32 of 1994) ;
(c) where tax was paid on any supply, both under the Maharashtra Value
Added Tax Act, 2002(Ma h .IX of2005) and under Chapter V of the Finance Act, 1994(32 of 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.
(12) 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.
(13) Where a supplier has made any sale of goods in respect of which
tax was required to be deducted at source under the Maharashtra Value
Added Tax, 2002 and has also issued an invoice for the same before the
appointed day, no deduction of tax at source under section 51 shall be made
by the deductor under the said section where payment to the said supplier is
made on or after the appointed day.
(14) Where any goods or capital goods belonging to the principal are
lying at the premises of the agent on the appointed day, the agent shall be
entitled to take credit of the tax paid on such goods or capital goods subject
to fulfilment of the following conditions :
(i) the agent is a registered taxable person under this Act ;
(ii) both the principal and the agent declare the details of stock of
goods or capital goods lying with such agent on the day immediately
preceding the appointed day in such form and manner and within such
time as may be prescribed in this behalf ;
(iii) the invoices for such goods or capital goods had been issued
not earlier than twelve months immediately preceding the appointed
day ; and
(iv) the principal has either reversed or not availed of the input
tax credit in respect of such,—
(a) goods ; or
(b) capital goods or, having availed of such credit, has reversed
the said credit, to the extent availed of by him.
Explanation.—For the purposes of this Chapter, the expression
“capital goods” shall have the same meaning as assigned to it in the
Maharashtra Value Added Tax, 2002.
