Chapter XX TRANSITIONAL PROVISIONS

( 1) On and from the appointed day, every person registered Migration of existing under any of the existing laws · and having a valid taxpayers. 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 and, 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 formand manner and subject to such conditions as may be prescribed. {3) The certificate of registration issued to a person under sub-section (1) shallbe 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

(1) A registered person, other than a person opting to pay tax under section 10, shallbe entitled to take, in his electronic credit ledger credit of the amount ofValue 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 himunder the existing law, not later than ninety days after thesaid day, in such manneras may he prescribed: Providedthatthe 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 allthe returns required under the existing law forthe period of six months immediately preceding the appointed date or (iii) where thesaid amount ofcredit relates to goods sold under notification No. 5/6/2002-FD(TAX) Pt-1 anddtd. 08/06/2016 claiming refund of value added tax paid thereon (whereverapplicable): Transitional arrangements for input tax credit. 74ofl956 137 Provided further that so much of thesaid credit as is attributable to any claim related to section 3, sub-section (3) ofsection 5, section 6, section 6A or sub-section (8) .of.section 8of the CentralSales Tax Act, 1956 that is not substantiated in the manner, and within the period, prescribed in. rule 12 of the C:;:?!Jtral Sales Tax {Registration and Turnover) Rules, 1957 shall not be e1igible 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 underthe existing law when the said claims are substantiated in the manner prescribed in rule 12 of theCentralSales Tax (Registration and Turnover) Rules,

(1) Where any inputs received at a place of business had been despatched as such or despatched after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purpose in accordancewith 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 ofthe 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 a period of six months or the extended period from the appointed day, the input tax creditshall be liable to be recovered in accordancewith the provisions of clause (a) of sub-section (S)_ofsection

Transitional provisions relating to job work. 140 (2) Where any semi-finished goods had been despatched from any 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 '1ay,-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 ifthe 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) ofsub-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 six months or the extended period, as the case may be, from the appointed day. (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 ofbusiness 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) ofsub-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 six months or the extended period, as the case may be, from the appointed day. 141 (4) The tax under sub-sections (1), (2) and (3}ihall not be payable only ifthe person despatching the goods and the job worker declarethe details ofthe inputs or goods held in stock by the job worker on behalf ofthe said person on the appointed day in su?hJorm and manner and within such time as may be prescribed.