Amended and updated notes on section 141 of CGST Act, 2017. Detail discussion on provisions and rules related to transitional provisions relating to job work.
Chapter XX (Sections 139–142) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to transitional provisions. Section 141 of CGST 2017 provides for transitional provisions relating to job work.
Recently, we have discussed in detail section 140 (Transitional arrangements for input tax credit) of CGST Act 2017. Today, we learn the provisions of section 141 of Central GST Act 2017.
Section 141 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 141 is 1-7-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | XX |
| Chapter Name | Transitional Provisions |
| Section No. | 141 |
| Section Name | Transitional provisions relating to job work |
| Updated 2025 Edition | GST Law Book PDF |
Relevant Rules and Forms for GST Section 141:
- Rule 119: Declaration of stock held by a principal and job-worker
- FORM GST TRAN-01: Transitional ITC / Stock Statement
- Rule 120A: Revision of declaration in FORM GST TRAN-1
- FORM GST TRAN-01: Transitional ITC / Stock Statement
Section 141 of Central GST – Transitional provisions relating to job work1
Section 141 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.
Section 141(1) of CGST Act
Section 141(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.
Section 141(2) of CGST Act
Section 141(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.
Section 141(3) of CGST Act
Section 141(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.
Section 141(4) of CGST Act
Section 141(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.
- Section 141 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎
Notes on Section 141 of CGST Act
Explanation of CGST Section 141(1)
Section 141(1) of the Central Goods and Services Tax (CGST) Act, 2017 deals with inputs that were sent to a job worker before the implementation of GST (i.e., the “appointed day”) under the previous tax regime. The key points are:
- Pre-GST Input Movement:
- If any inputs (raw materials, components, etc.) were received at a place of business and subsequently sent to a job worker for processing, testing, repair, reconditioning, or any other purpose under the previous tax system, this section applies.
- Post-GST Return of Inputs:
- If these inputs are returned to the original place of business on or after the GST implementation date, then no tax shall be payable on their return.
- Time Limit for Returning Inputs:
- The inputs must be returned within six months from the appointed day (i.e., GST rollout date).
- The Commissioner can extend this period by two more months if a valid reason is provided.
- Failure to Return Inputs in Time:
- If the inputs are not returned within the specified period, the business that sent them will have to repay the input tax credit (ITC) claimed earlier.
- The ITC recovery will be done as per Section 142(8)(a) of the CGST Act.
Purpose of Section 141(1)
This provision ensures a smooth transition from the old tax regime to GST, allowing businesses to continue operations without immediate tax liability on goods already in the job work process before GST implementation. However, it also sets a time-bound framework to ensure proper tracking and tax compliance.
Explanation of CGST Section 141(2)
Section 141(2) of the Central Goods and Services Tax (CGST) Act, 2017 deals with semi-finished goods that were sent out from a place of business to another location for further manufacturing before GST implementation. The key points are:
- Pre-GST Movement of Semi-Finished Goods:
- If semi-finished goods were removed from a business location to another manufacturing unit or premises for further processing before the GST rollout, this section applies.
- Post-GST Return of Goods:
- If these semi-finished goods are returned to the original place of business after GST implementation, then no tax shall be payable on their return.
- Time Limit for Returning Goods:
- The goods must be returned within six months from the appointed day (i.e., the date GST came into effect).
- The Commissioner may extend this period by up to two more months if a valid reason is provided.
- Failure to Return Goods in Time:
- If the goods are not returned within the specified period, the business will have to repay the input tax credit (ITC) claimed earlier.
- ITC recovery will be done as per Section 142(8)(a) of the CGST Act.
- Option to Transfer Goods Instead of Returning:
- Instead of returning the goods, the manufacturer may:
- Transfer the semi-finished goods to a registered person for further supply.
- Supply them within India on payment of tax.
- Export them without tax, following GST export rules.
- This ensures business flexibility while maintaining tax compliance.
- Instead of returning the goods, the manufacturer may:
Purpose of Section 141(2)
This provision facilitates a smooth transition from the old tax regime to GST, ensuring that businesses do not face tax burdens on work-in-progress (WIP) goods already in the manufacturing pipeline. It also provides flexibility for manufacturers to either return the goods or transfer them under GST compliance.
Explanation of CGST Section 141(3)
Section 141(3) of the Central Goods and Services Tax (CGST) Act, 2017 deals with excisable goods that were sent out for testing or any other process (not amounting to manufacture) before the implementation of GST. The key points are:
- Pre-GST Movement of Excisable Goods:
- If excisable goods (i.e., goods subject to excise duty under the previous tax regime) were removed from a business location without payment of duty to another premises for testing or other processes (that do not qualify as “manufacture”), this section applies.
- The recipient premises could be registered or unregistered under the previous tax regime.
- Post-GST Return of Goods:
- If these goods are returned to the original place of business after GST implementation, then no tax shall be payable on their return.
- Time Limit for Returning Goods:
- The goods must be returned within six months from the appointed day (i.e., the date GST came into effect).
- The Commissioner can extend this period by two more months if a valid reason is provided.
- Failure to Return Goods in Time:
- If the goods are not returned within the specified period, the business will have to repay the input tax credit (ITC) claimed earlier.
- ITC recovery will be done as per Section 142(8)(a) of the CGST Act.
- Option to Transfer Goods Instead of Returning:
- Instead of returning the goods, the manufacturer may:
- Transfer them from the other premises to a registered person for further supply.
- Supply them within India on payment of tax.
- Export them without tax, following GST export rules.
- This provides flexibility for businesses to either return or supply the goods under GST compliance.
- Instead of returning the goods, the manufacturer may:
Purpose of Section 141(3)
This provision ensures a smooth transition from excise duty to GST, preventing unnecessary tax liabilities on goods that were already in process before GST implementation. It also provides business flexibility by allowing transfer or export options while ensuring tax compliance.
Explanation of CGST Section 141(4)
Section 141(4) of the Central Goods and Services Tax (CGST) Act, 2017 lays down a compliance condition for availing the tax exemption provided under sub-sections (1), (2), and (3) of Section 141. The key points are:
- Tax Exemption Condition:
- The exemption from tax on the return of inputs, semi-finished goods, or excisable goods under Section 141(1), (2), and (3) shall only apply if a declaration is made.
- Declaration by Manufacturer & Job Worker:
- The manufacturer and the job worker must declare the details of:
- Inputs or semi-finished goods held in stock by the job worker on behalf of the manufacturer as of the appointed day (GST implementation date).
- Excisable goods sent for testing or processing (as covered under Section 141(3)).
- The manufacturer and the job worker must declare the details of:
- Declaration Format & Timeline:
- The declaration must be submitted in the prescribed form and manner as specified by the GST rules.
- It must be filed within the prescribed time limit to ensure compliance.
Purpose of Section 141(4)
This provision ensures transparency and accountability in the transition from the old tax regime to GST. By requiring manufacturers and job workers to declare stock details, it prevents misuse of tax exemptions and ensures that only genuine transactions benefit from the tax relief provided under Section 141(1), (2), and (3).