142. (1) Where any goods on which duty, if any, had been paid under the existing law at the time of removal thereof, not being earlier than six months prior to the appointed day, are returned to any place of business on or after the appointed day, the registered person shall be eligible for refund of the duty paid under the existing law where such goods are returned by a person, other than a registered person, to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of the proper officer:
Provided that if the said goods are returned by a registered person, the return of such goods shall be deemed to be a supply.
II. Understanding Provisions
A) Goods Return from Unregistered Person in GST
The section 142(1) provides refund of duty/tax paid on goods which was sold prior to 30-6-2017, but returned by an unregistered person to any place of business after 30-6-2017 subject to certain conditions as mentioned below :
(a) The appropriate amount of duty/VAT must have been paid at the time of sale/clearance of goods to the customer.
(b) The goods should have been supplied to the customer during the period 1-1-2017 to 30-6-2017.
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(c) The goods shall be returned back within a period of six months from the appointed date i.e. upto December 2017 by the person other than registered person.
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