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

Under the transitional job work provisions, the Commissioner is satisfied that sufficient cause exists for a delay in the return of semi-finished goods sent to another premises for manufacturing processes before the appointed day. What is the maximum extension the Commissioner can grant?

The Commissioner may extend the six-month period by a further period not exceeding two months, and only on sufficient cause being shown. The total time is therefore up to eight months from the appointed day for semi-finished goods sent out for manufacturing processes.

  1. AA further period not exceeding two monthsCorrect
  2. BA further period not exceeding three months
  3. CA further period not exceeding six months
  4. DNo extension is permitted

Explanation

The first proviso to section 141(2) allows the Commissioner, on sufficient cause being shown, to extend the six-month period by a further period not exceeding two months. Three or six months exceeds this limit, and the statute does allow an extension, so 'none' is wrong.

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