Section 142 contains various transitional provisions designed to address situations arising from the shift from the old indirect tax regime to GST. Since GST replaced multiple taxes such as VAT, Central Excise Duty, and Service Tax, there were numerous transactions, refund claims, assessments, appeals, and disputes that remained pending when GST was introduced. This section provides a legal framework for handling such matters smoothly.

The section states that refund claims filed under the earlier laws before GST implementation shall continue to be processed according to those laws. Any refund sanctioned is generally paid in cash. Similarly, appeals, reviews, revisions, assessments, adjudications, and recovery proceedings initiated under previous tax laws continue to be governed by those laws even after GST implementation. Any amount found recoverable through such proceedings may be recovered as arrears under GST provisions.

The section also deals with price revisions relating to contracts entered into before GST. If the price of goods or services supplied before GST is revised upward after GST implementation, the supplier may issue a supplementary invoice or debit note and pay GST accordingly. If the price is revised downward, a credit note may be issued subject to prescribed conditions.

Another important aspect concerns goods returned after GST implementation that were originally sold before GST. The section provides specific rules regarding tax treatment in such cases to avoid double taxation or denial of legitimate credit.

The objective of Section 142 is to ensure continuity, fairness, and legal certainty during the transition from the old tax structure to GST while safeguarding both taxpayer rights and government revenue.

Example:
A VAT refund application filed in June 2017 continued to be processed under VAT law even after GST came into force.

Key Point:
Pending matters under previous tax laws continue to be governed by those laws.

In One Line:
Section 142 acts as a bridge between the old tax regime and GST.