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

Under the transitional job work provisions, the tax relief for inputs or goods sent to a job worker before the appointed day applies only if which condition is met?

The relief applies only if both the manufacturer and the job worker declare the details of inputs or goods held by the job worker on the appointed day, in the prescribed form and manner and within the prescribed time. Without this declaration, tax is not exempted.

  1. AThe job worker is a registered dealer paying tax on the goods
  2. BThe manufacturer and the job worker declare details of the stock held by the job worker on the appointed day in the prescribed form, manner and timeCorrect
  3. CThe goods are exported after job work
  4. DThe manufacturer obtains prior approval of the Commissioner in every case

Explanation

Section 141(4) states that the tax under sub-sections (1), (2) and (3) is not payable only if the manufacturer and the job worker declare the details of inputs or goods held in stock by the job worker on behalf of the manufacturer on the appointed day, in the prescribed form, manner and time. Commissioner approval is needed only for extension.

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