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

Raghav Components Ltd sent inputs to a job worker under the existing law before the appointed day. The inputs return to its place of business after the appointed day. Under the transitional job work provisions, no tax is payable if the inputs are returned within what period from the appointed day, without any extension?

The basic period is six months from the appointed day. If inputs sent to a job worker under the existing law come back within six months, no tax is payable. Any extension is possible only for sufficient cause, and only by the Commissioner.

  1. AThree months
  2. BSix monthsCorrect
  3. CEight months
  4. DTwelve months

Explanation

Section 141(1) says no tax is payable if the inputs, after job work or otherwise, return to the place of business within six months from the appointed day. Eight months is only the outer limit after a Commissioner extension, so it is not the basic period.

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