CMA Final · Indirect Tax Laws and Practice · Transition to GST (Transitional Provisions)
Under the third proviso to section 141(2), a manufacturer whose semi-finished goods are at another premises for processes under the existing law, before the appointed day, may do which of the following within the six-month period?
The manufacturer may transfer the goods to the premises of any registered person for supply from there, either on payment of tax in India or without payment of tax for exports. This must happen within the period in the sub-section, and the goods need not first return to the manufacturer.
- ASell the goods only after they come back to its own place of business
- BTransfer the goods to the premises of any registered person for supply therefrom on payment of tax in India, or without payment of tax for exportsCorrect
- CWrite off the goods and claim a refund of input tax credit
- DTransfer the goods only to another job worker without any supply
Explanation
The third proviso to section 141(2) allows the manufacturer, in accordance with the existing law, to transfer the said goods to the premises of any registered person for supplying therefrom on payment of tax in India or without payment of tax for exports, within the period in the sub-section. The goods need not first return.
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