Skip to content

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

Under the transitional provisions on job work in the CGST Act, 2017, inputs were sent to a job worker for processing under the existing law before the appointed day and are returned to the principal's place of business on or after the appointed day. Within what basic period must they be returned for no tax to be payable?

The inputs must be returned within six months from the appointed day. If they come back within that period, no tax is payable on their return. The Commissioner may extend this by up to two more months on sufficient cause.

  1. AWithin three months from the appointed day
  2. BWithin six months from the appointed dayCorrect
  3. CWithin twelve months from the appointed day
  4. DWithin two months from the appointed day

Explanation

Section 141(1) says no tax is payable if the inputs are returned to the said place within six months from the appointed day. Three or two months are shorter than the statutory period. Twelve months is not provided; the extension is only up to a further two months.

Did you get it right without looking?

One question tells you little. A timed set on Transition to GST (Transitional Provisions) shows your real accuracy, how long you take and where you lose marks.

Practise Transition to GST (Transitional Provisions)Free diagnostic mock

More Transition to GST (Transitional Provisions) questions