Sections 19 and 20 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 19 and 20 of the Union Territory Goods and Services Tax Act, 2017 finish Chapter VIII, "Transitional Provisions". Section 19 deals with goods sent out for job work, processing or tests under the existing law before the appointed day and returned on or after it. Section 20 has twelve sub-sections on returned goods, price revisions, refund claims, pending proceedings, revised returns, contracts, goods on approval and tax deduction at source.
This article follows the UTGST Act, 2017 as amended up to 31 October 2025 in the compilation consulted; notifications issued after that date should be checked. The provisions are explained as printed, in the present tense of the text, with no statement on how they are applied now. Where the sections name other laws (the Finance Act, 1994, the central tax Act and the existing laws), they are quoted as printed; check the current law for the corresponding provisions.
Section 19: no tax is payable on inputs, semi-finished goods or goods sent out before the appointed day and returned within six months of it, extendable by the Commissioner for not more than two months, if the declaration of details is made; otherwise credit is recoverable under section 142(8)(a) of the CGST Act. Section 20: returned goods, price revisions (thirty days), pending refunds and proceedings are governed by the existing law, with recoveries as an arrear of tax under this Act.
How these sections relate to the CGST Act
The central counterparts are sections 141 and 142 of the CGST Act. This article explains the UTGST text and links them rather than repeating them: section 141 of the CGST Act, 2017: transitional provisions relating to job work and section 142 of the CGST Act, 2017: miscellaneous transitional provisions. The group post is UTGST sections 9 to 20: credit, transfer and administration. If an old refund, appeal or recovery proceeding is still on your files, our GST notices and litigation service can help you read it against these sections.
Section 19: job work
Section 19(1): inputs sent to a job worker
Where inputs received at a place of business were despatched, as such or 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 are returned 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". The first proviso allows the Commissioner, on sufficient cause, to extend the six months "for a further period not exceeding two months". The second: if not returned within the period, "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 of the Central Goods and Services Tax Act".
Section 19(2): semi-finished goods
The same six months, the same two-month extension and the same recovery consequence apply to semi-finished goods despatched to other premises for manufacturing processes under the existing law. A third proviso allows the person despatching the goods, in accordance with the existing law, to transfer them to the premises of a registered person for supply "on payment of tax in India or without payment of tax for exports" within the six months or the extended period.
Section 19(3): goods sent for tests or other processes
Goods despatched without payment of tax for tests or any other process to premises "whether registered or not" and returned on or after the appointed day: no tax if returned within six months, with the same extension, recovery consequence and onward-transfer proviso.
Section 19(4): the declaration
Tax under sub-sections (1), (2) and (3) "shall not be payable only if the person despatching the goods and the job worker declare the details of the inputs or goods held in stock by the job worker on behalf of the said person on the appointed day in such form and manner and within such time as may be prescribed". The word "only" makes the declaration a condition.
Section 20: miscellaneous transitional provisions
| Sub-section | Subject | What it provides |
|---|---|---|
| (1) | Goods returned | Goods on which tax was paid under the existing law, sold not earlier than six months before the appointed day, returned on or after it: refund of the tax paid under the existing law if returned by a person other than a registered person within six months and identifiable to the proper officer; if returned by a registered person, the return is deemed a supply |
| (2)(a) | Price revised upwards | Under a contract before the appointed day: supplementary invoice or debit note within thirty days of the price revision, deemed an outward supply under this Act |
| (2)(b) | Price revised downwards | A credit note may be issued within thirty days; the proviso lets the supplier reduce tax liability only if the recipient has reduced input tax credit correspondingly |
| (3) | Refund claims | Claims for refund of input tax credit, tax, interest or any other amount paid under the existing law, filed before, on or after the appointed day: disposed of under the existing law, refunded in cash; rejected amounts lapse; no refund where the balance has been carried forward under this Act |
| (4) | Export refund | Refund claims after the appointed day for tax on goods exported before or after it: disposed of under the existing law, with the same two provisos |
| (5) | Input tax credit proceedings | Appeal, revision, review or reference proceedings relating to a claim for credit (a) or its recovery (b): existing law applies; amounts recoverable are recovered as an arrear of tax under this Act and are not admissible as credit |
| (6) | Output tax proceedings | Proceedings relating to output tax liability: existing law applies; recoverable amounts recovered as an arrear under this Act; amounts found admissible refunded in cash |
| (7) | Assessment or adjudication | Amounts becoming recoverable are recovered as an arrear of tax under this Act, unless recovered under the existing law; amounts refundable are refunded in cash |
| (8) | Revised returns | A return under the existing law revised after the appointed day: recoverable amounts or inadmissible credit are recovered as an arrear; revised within the time limit of the existing law and found refundable: refunded in cash |
| (9) | Contracts | Supplies on or after the appointed day under a contract entered into earlier are liable to tax under this Act, save as otherwise provided in the Chapter |
| (10) | Existing tax | (a) no tax on goods to the extent tax was leviable under the existing law; (b) no tax on services to the extent leviable under Chapter V of the Finance Act, 1994; (c) where tax was paid under both, tax is leviable under this Act and credit of value added tax or service tax paid is allowed for supplies after the appointed day |
| (11) | Goods on approval | Goods sent on approval not earlier than six months before the appointed day and returned within six months: no tax; extension up to two months; tax on the person returning late or the sender if not returned |
| (12) | Tax deduction at source | No deduction under section 51 of the CGST Act, as made applicable to this Act, where the supplier sold goods and issued an invoice before the appointed day and payment is made on or after it |
The Explanation to the Chapter gives "capital goods" the meaning in the existing law relating to sale of goods.
The thirty-day and six-month periods
The periods in the text are:
- six months, for the return of job-work goods (section 19) and returned goods (section 20(1), (11)), extendable by the Commissioner by not more than two months in section 19 and section 20(11);
- thirty days, for a supplementary invoice, debit note or credit note after a price revision (section 20(2)).
Who does what, by when
| Who | What | Time as printed | Provision |
|---|---|---|---|
| Person sending goods and the job worker | Declare details of goods held by the job worker | As prescribed | 19(4) |
| Person receiving job-work goods | Receives them back | Within six months of the appointed day, extendable by two months | 19(1) to (3) |
| Seller whose price is revised | Issues a supplementary invoice or debit note (must); credit note (may) | Within thirty days of the revision | 20(2) |
| Person returning goods | Returns them | Within six months of the appointed day | 20(1), 20(11) |
A worked example
Names and amounts are assumed. Stonebridge Castings, an invented registered person, sent 500 kilograms of semi-finished goods to a processor before the appointed day under the existing law. They return on a date within six months of the appointed day, and both Stonebridge Castings and the processor have declared the details of the goods in stock with the processor as prescribed. Under section 19(2) and (4), no tax is payable on the return. Had the goods come back only after the six months and the extra two months allowed by the Commissioner, the input tax credit would be liable to be recovered as section 19(2) provides.
Separately, Stonebridge Castings sold goods under a contract of the earlier period and, after the appointed day, the price was revised upwards by 12,000 rupees. Under section 20(2)(a) it issues a supplementary invoice or debit note within thirty days of the revision, deemed to be an outward supply under this Act.
Need help with an old refund, appeal or recovery?
Proceedings begun under the existing law run side by side with this Act. We trace each one to the sub-section that governs it and the steps still open. See our GST notices and litigation service.
Key takeaways
- Section 19: inputs, semi-finished goods and goods sent for tests return without tax within six months of the appointed day, extendable by up to two months, if the declaration is made.
- If they do not return in time, the input tax credit is liable to be recovered under section 142(8)(a) of the CGST Act.
- Section 20(2): supplementary invoice or debit note within thirty days of an upward price revision.
- Section 20(3) to (8): refunds and proceedings under the existing law follow the existing law; recoveries are an arrear of tax under this Act.
- Section 20(12): no tax deduction at source where the invoice was issued before the appointed day and payment is made on or after it.
Read next
- Section 21 of the UTGST Act, 2017: application of provisions of the CGST Act
- Sections 17 and 18 of the UTGST Act, 2017: migration and transitional input tax credit
- Section 141 of the CGST Act, 2017
- Section 142 of the CGST Act, 2017
Disclaimer: Based on the Central Goods and Services Tax Rules, 2017 and the GST Acts as amended up to 31 October 2025 in the compilation consulted, read with the Finance Act, 2026 where this article says so, as consulted on 2 October 2026. Notifications, circulars and amendments issued after that date, the forms on the common portal and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.