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CMA Final · Indirect Tax Laws and Practice · Transition to GST (Transitional Provisions)

Inputs sent to a job worker before the appointed day could not be returned within six months from the appointed day. The Commissioner is satisfied that sufficient cause exists. What is the maximum total period within which the inputs can be returned without tax, counted from the appointed day?

The maximum is eight months from the appointed day. The basic period is six months, and on sufficient cause the Commissioner may extend it by a further period not exceeding two months. Any return beyond eight months attracts recovery of input tax credit.

  1. ASeven months
  2. BEight monthsCorrect
  3. CTen months
  4. DTwelve months

Explanation

The basic period is six months. The proviso lets the Commissioner extend it by a further period not exceeding two months, so the maximum is 6 + 2 = 8 months. Ten or twelve months would exceed the permitted extension.

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