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 by a manufacturer to a job worker under the existing law before the appointed day. Within what period from the appointed day must they be returned to the manufacturer's place of business for no tax to be payable, before any extension?

The inputs must be returned within six months from the appointed day. If they come back within that window, no tax is payable. The Commissioner may extend the period on sufficient cause, but the basic period in the section is six months.

  1. AThree months
  2. BSix monthsCorrect
  3. CNine months
  4. DTwelve months

Explanation

Section 141(1) provides that no tax is payable if the inputs are returned to the said place within six months from the appointed day. The Commissioner may extend this on sufficient cause. Three, nine and twelve months have no basis in the section.

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