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

Inputs were sent to a job worker before the appointed day. The principal shows sufficient cause, and the Commissioner grants the maximum extension available under the transitional job work provisions. What is the latest period from the appointed day within which the inputs can be returned without tax?

The latest period is eight months from the appointed day. The basic window is six months, and on sufficient cause the Commissioner can extend it by a further period not exceeding two months, giving a combined maximum of eight months.

  1. AEight monthsCorrect
  2. BNine months
  3. CSeven months
  4. DTwelve months

Explanation

The basic period is six months. The first proviso allows the Commissioner to extend it by a further period not exceeding two months. So the maximum is 6 + 2 = 8 months. Nine months wrongly assumes a three-month extension.

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