CMA Final · Indirect Tax Laws and Practice · Transition to GST (Transitional Provisions)
Under the transitional provisions, the Commissioner is satisfied that sufficient cause exists for delay in the return of semi-finished goods sent for manufacturing processes before the appointed day. What is the maximum total period, counted from the appointed day, within which the goods may be returned without tax?
The maximum is eight months from the appointed day. The basic period is six months, and the Commissioner may extend it by a further period not exceeding two months if sufficient cause is shown.
- ASix months
- BSeven months
- CEight monthsCorrect
- DTwelve months
Explanation
Section 141(2) allows six months. The first proviso lets the Commissioner extend for a further period not exceeding two months. The total maximum is 6 + 2 = 8 months. Twelve months would wrongly assume a six-month extension.
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