Section 142 - Miscellaneous transitional provisions
Reviewed by CA Nikhil Gupta and Kajri Singh · Last reviewed 30 August 2026
Finin2min Summary - Section in 2 Minutes
Coordinates pre-GST returns, refunds, price revisions, contracts, assessments, appeals and recoveries with the GST regime, generally preserving cash settlement under the existing law and preventing double credit.
Why Section 142 matters
Section 142 (Miscellaneous transitional provisions) is the section-level control point within Chapter XX — Transitional Provisions. Transitional provisions bridge pre-GST taxes and transactions into GST. They are historical, evidence-heavy and often litigation-sensitive.
Current-law and amendment control
validation 1 — controlling consolidated Act
India Code — Central Goods and Services Tax Act, 2017. Used for the current chapter/section inventory and consolidated provision status.
validation 2 — independent official cross-check
CBIC Tax Information Portal. Use the Act HTML/PDF and amendment history together with current notifications/circulars.
Transaction-date rule: Never treat today’s consolidated wording, a portal screen or an enacted-but-uncommenced amendment as proof of the law that applied on another date. Fix the relevant tax period first.
Official statutory text
The authoritative provision, footnotes and amendment notes are maintained in the official consolidated Act. This analytical page does not re-typeset amendment markers into the running statutory sentence.
- Open the India Code consolidated CGST Act PDF - as on 11 June 2026
- Open the India Code CGST Act register
- Open the CBIC Tax Information Act explorer
Official-source reference reviewed on 2026-07-28. Apply the version and commencement position relevant to the transaction period.
Clause-by-clause / paragraph-wise decode
Coordinates pre-GST returns, refunds, price revisions, contracts, assessments, appeals and recoveries with the GST regime, generally preserving cash settlement under the existing law and preventing double credit.
Section–Rule–Form–Notification–Circular bridge
The mapping is a legal concordance, not a round-robin related-link list. It is limited to instruments listed in this repository.
Practical example
A pre-GST assessment is concluded after GST begins and results in a refund. The refund is paid in cash under the existing law rather than credited to the GST ledger.
Professional alert
The provision prevents double benefit. A cash refund or recovery under the existing law usually does not become GST ITC unless the statute expressly permits it.
Linked Rules and current operative controls Rules are read as a consolidated legal layer. Where a rule is legacy or institutionally transitioned, the current status is stated expressly. Rule 117 RULE TEXT / CONSOLIDATED BASE LAYER 117. Tax or duty credit carried forward under any existing law or on goods held in stock on the appointed day.- Eligible persons were required to submit FORM GST TRAN-1 electronically within the notified period, with prescribed declarations and stock/duty details. The rule contains special declarations for capital goods, goods sent to job workers, centralised registrations and specified stock credits. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 This is a legacy rule. Apply the statutory conditions, original return data, notified windows and binding judicial/portal reopening directions such as the Supreme Court TRAN-1/TRAN-2 facilitation. Rule 118 RULE TEXT / CONSOLIDATED BASE LAYER 118. Declaration to be made under clause (c) of sub-section (11) of section 142.- Persons to whom the provision applied were required to furnish FORM GST TRAN-1 with the proportion of supply made before the appointed day but invoice issued after it. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Legacy transitional declaration; reconcile contract, milestone, invoice and pre-GST tax evidence. Rule 119 RULE TEXT / CONSOLIDATED BASE LAYER 119. Declaration of stock held by a principal and job-worker.- The principal and job worker were to declare appointed- day stock details in FORM GST TRAN-1 within the prescribed period.
CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Relevant to historical section 141 disputes; preserve challans, stock registers, job-work records and return dates. Rule 120 RULE TEXT / CONSOLIDATED BASE LAYER 120. Details of goods sent on approval basis.- A person holding goods sent on approval not earlier than six months before the appointed day was to submit FORM GST TRAN-1 details within the prescribed period. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Apply section 142(12), the approval dispatch date and return/supply timeline. Rule 120A RULE TEXT / CONSOLIDATED BASE LAYER 120A. Revision of declaration in FORM GST TRAN-1.- A registered person who submitted TRAN-1 within time could revise it once within the period specified by the Commissioner. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Legacy one-time revision rule; verify whether relief arises from an order, portal reopening or litigation direction. Rule 121 RULE TEXT / CONSOLIDATED BASE LAYER 121. Recovery of credit wrongly availed.- Transitional credit wrongly credited may be recovered under section 73, 74 or, for the legally relevant later architecture, section 74A, as applicable. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Notification 20/2024-Central Tax aligned the rule with section 74A from 1 November 2024. Match the period and allegation before selecting the demand section.
Notifications, circulars and implementation controls Instrument Date/status Why it matters CGST Rules 117-121 and TRAN forms Legacy appointed-day framework Prescribed declarations for carried-forward credit, stock, job work, approval goods and recovery. Notification 48/2018- Central Tax 10 September 2018 Extended/modified transitional declaration mechanisms for specified taxpayers. Notification 02/2020- Central Tax 1 January 2020 Inserted rule 117(1A) and related relief for specified technical difficulties. Union of India v. Filco Trade Centre Pvt. Ltd. Supreme Court orders, 2022 Directed a special GST portal window for TRAN-1/ TRAN-2 filing/revision and officer verification. Circular 180/12/2022-GST 9 September 2022 Issued guidelines for verifying transitional credit claims filed through the Supreme Court-directed window. Notification 20/2024- Central Tax 8 October 2024; relevant change from 1 November 2024 Aligned rule 121 recovery wording with section 74A. Reading rule: Notifications determine class, date and conditions; circulars guide administration but cannot override the Act, Rules, Gazette or binding courts.
CA / finance / professional case studies Case 1: TRAN-1 technical failure Facts: Eligible credit was in the last return, but portal logs show failed filing. Question: What evidence matters? Analysis: Reconcile the last return, ledger, attempted filing screenshots/help-desk record, Supreme Court window filing and verification order. Technical relief does not remove substantive eligibility conditions. References: s.140; r.117; Filco orders Case 2: Capital-goods balance credit Facts: Half of eligible duty credit was taken under the old law. Question: Can the balance transition? Analysis: Apply section 140 capital-goods condition and ensure the balance was admissible both under existing law and GST, with invoice and fixed-asset records. References: s.140(2) Case 3: Stock without duty invoice Facts: A trader held specified goods on 30 June 2017 but lacked duty-paying documents. Question: Is deemed credit automatic? Analysis: No. It depended on the then-applicable provisos, notification/rule conditions, stock statements and sale/payment timelines. Reconstruct the historical scheme rather than applying current ITC rules. References: s.140; r.117
Case 4: Pre-GST inputs at job worker Facts: Inputs sent in May 2017 returned after the statutory transition period. Question: What follows? Analysis: Test section 141 return-time conditions and any permitted extension. If not met, quantify the deemed consequences and reconcile job-worker declarations. References: s.141; r.119 Case 5: Price revision after GST Facts: A pre-GST contract price is increased after 1 July 2017. Question: How is the adjustment documented? Analysis: Issue the statutory supplementary invoice/debit note within the section 142 window and pay GST where required, while preventing duplication with existing-law tax. References: s.142(2) Case 6: Legacy refund order Facts: A pre-GST excise appeal succeeds in 2026. Question: Cash or GST credit? Analysis: Section 142 generally routes the refundable amount in cash under the existing law, subject to unjust enrichment and other preserved provisions; rejected amount does not become GST ITC. References: s.142 Case 7: Legacy demand after adjudication Facts: A service-tax demand becomes final after GST. Question: How is it recovered? Analysis: Recover as an arrear under the existing/GST saving architecture as section 142 directs; do not debit current ITC unless law permits. References: s.142; s.174
Case 8: Return revised after appointed day Facts: An old-law return revision increases credit. Question: Can the increase be taken as GST ITC? Analysis: Apply the specific section 142 revision clause and its time/eligibility limitations. Increases are not automatically transferable merely because the old return was revised. References: s.142(9)
Finin2min Q&A 1. Are transitional credits still a live compliance topic? They are closed for ordinary filing but remain relevant in verification, litigation, recovery and legacy audit. 2. Was every closing credit transferable? No. Section 140 imposed eligibility under both existing law and GST plus documentation and return conditions. 3. What was TRAN-1 used for? Migration of specified carried-forward, stock, capital-goods, job-work and related transitional details. 4. Can a technical portal failure create substantive eligibility? No. Technical relief may reopen filing, but the underlying credit must still be legally admissible. 5. What did the Filco orders do? They directed a special portal window and verification process for TRAN-1/TRAN-2 claims. 6. How are pre-GST goods with job workers handled?
Finin2min decision path
- Fix the legacy tax regime and transition date.
- Identify the specific transitional entitlement or obligation.
- Locate original returns/forms/documents from the pre-GST period.
- Apply the transitional provision and relevant judicial history.
- Preserve legacy evidence because current portal data may not reproduce it.
Practical case studies
Accounting, ERP & portal touchpoints
Legacy tax data should remain archived and retrievable even if the current ERP no longer uses those tax codes.
Control: keep the legal conclusion separate from system configuration; document every tax-code/master change and its effective date.
Notice, litigation & evidence risk
Transitional disputes depend heavily on historical evidence and court orders. Preserve old returns, declarations, challans and correspondence.
Evidence hierarchy: source transaction → books/ERP → statutory return/form → portal acknowledgement → legal working → correspondence/order.
Judicial position — how to read precedent
Start with binding Supreme Court authority, then the jurisdictional High Court, other High Courts and GSTAT where applicable. AAR/AAAR rulings are fact- and jurisdiction-sensitive and should not be presented as universal law. Always check whether a decision has been stayed, reviewed, distinguished or overtaken by amendment.
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Common mistakes to avoid
- Using current GST concepts to rewrite a pre-GST event.
- Discarding legacy tax records after normal ERP migration.
- Ignoring transition-specific time limits/forms.
- Assuming current portal balances prove original entitlement.
Questions professionals actually ask
- Can old pre-GST credit still affect a GST dispute?
- Apply section 142 to the exact facts and period, then verify the linked delegated law and official implementation material before concluding.
- What evidence is needed for transitional GST credit?
- Retain the source document, return/ledger trail, official legal source used, reconciliation and correspondence in a retrievable GSTIN/tax-period file.
- How are pre-GST job-work transactions treated?
- Apply section 142 to the exact facts and period, then verify the linked delegated law and official implementation material before concluding.
- Which law applies when a transaction crosses 1 July 2017?
- Apply section 142 to the exact facts and period, then verify the linked delegated law and official implementation material before concluding.
Related law and practical resources
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 142 regulate?
- It regulates miscellaneous transitional provisions. Read the exact text, conditions, exceptions and transaction date together.
- Which subordinate law should be checked?
- No direct CGST Rule has been listed in this repository. 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.