Section 141 - Transitional provisions relating to job work
Chapter XX - Transitional Provisions
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Finin2min Summary - Section in 2 Minutes
Protects specified pre-GST inputs, semi-finished goods and capital goods lying with job workers, provided they were returned or supplied within the transitional time and conditions.
Exact operative text
141. Transitional provisions relating to job work.-(1) Where any inputs received at a place of
business had been removed as such or removed after being partially processed to a job worker 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 job work 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 removed 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 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 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 manufacturer 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 excisable goods manufactured at a place of business had been removed without
payment of duty for carrying out tests or any other process not amounting to manufacture, 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 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 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 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 manufacturer 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 manufacturer and the
job worker declare the details of the inputs or goods held in stock by the job worker on behalf of the
manufacturer on the appointed day in such form and manner and within such time as may be prescribed.
Paragraph-wise decode
Protects specified pre-GST inputs, semi-finished goods and capital goods lying with job workers, provided they were returned or supplied within the transitional time and conditions.
Section-Rule-Form-Notification bridge
No direct Rule certified in Phase 1. Check notifications, circulars, forms and corresponding State law.
The mapping is a legal concordance, not a round-robin related-link list. It is limited to instruments certified in this phase.
Practical example
Inputs sent to a job worker before 1 July 2017 were returned after the permitted transitional period. The deemed treatment and existing-law/ GST consequences are quantified.
Professional alert
Read the provision with its linked Rules, Gazette commencement, delegation, State GST counterpart and binding judicial interpretation before applying it to a live case.
Implementation checklist
- Fix the transaction, taxable period and jurisdiction.
- Read every subsection, proviso, explanation and omission marker.
- Open the mapped Rule, form, notification and circular.
- Test State/UT variation and portal version.
- Preserve evidence, approvals, working papers and acknowledgements.
- Record the conclusion, assumptions, source date and reviewer.
Evidence and retention checklist
- Contract, purchase order, invoice or underlying transaction document.
- Registration, return, ledger, challan and portal acknowledgement.
- Official Act/Rule/notification version used and effective date.
- Internal tax position paper, computation and management approval.
- Correspondence, notices, replies, orders and appeal papers where applicable.
Practical Q&A
- What does section 141 regulate?
- It regulates transitional provisions relating to job work. Read the exact text, conditions, exceptions and transaction date together.
- Which subordinate law should be checked?
- No direct CGST Rule has been certified in this phase. Notifications, circulars, forms and the corresponding SGST/UTGST layer may also apply.
- What evidence should be retained?
- Preserve the contract or transaction record, invoice or form, portal acknowledgement, payment/ledger evidence, correspondence, legal working and the official source version used.
- Can portal behaviour override the statute?
- No. Portal functionality is operational evidence; legal entitlement and liability remain controlled by the Act, Rules, notifications and binding decisions.