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

Under section 141 of the CGST Act, 2017, on which condition is the tax relief for goods and inputs held by a job worker on the appointed day available?

Relief is available only if both the manufacturer and the job worker declare the details of the inputs or goods held in stock by the job worker on the appointed day, in the form, manner and time prescribed. A declaration by only one party does not meet the requirement.

  1. AThe job worker alone files an intimation within thirty days
  2. BThe manufacturer and the job worker declare details of the inputs or goods in the prescribed form, manner and timeCorrect
  3. CThe Commissioner issues a prior written approval for each consignment
  4. DThe goods must be insured for their full value during job work

Explanation

Section 141(4) says the tax under sub-sections (1), (2) and (3) is not payable only if both the manufacturer and the job worker declare details of the inputs or goods held in stock by the job worker on the appointed day, in the prescribed form, manner and time. A declaration by the job worker alone is insufficient.

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