Section 175 – Inputs removed for job work and returned on or after the appointed day
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 4-1-2017
GST DAILY DOSE OF UPDATION BY CA PRADEEP JAIN
TRANSITIONAL PROVISIONS-PART-VIII
Section 175 – Inputs removed for job work and returned on or after the appointed day
This section intends to enable the receipt of goods sent on job work before the appointed day but received back after the appointed day. Like the previous sections the time limit has been kept at 6 months from the appointed date to receive back such goods without payment of duty. The provision reads as follows:
Where any inputs received in a factory had been removed as such or removed after being partially proce
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
such without job work, then tax may become payable.
Apart from the above, 3 provisos from the old draft have been replaced to insert another proviso. The old provisos read as follows:
Provided further that tax shall be payable by the job worker if such inputs are liable to tax under this Act, and are returned after a period of six months or the extended period, as the case may be, from the appointed day:
Provided also that tax shall be payable by the manufacturer if such inputs are liable to tax under this Act, and are not returned within a period of six months or the extended period , as the case may be, from the appointed day.
This proviso lead to confusion that GST will be payable by job worker or manufacturer if goods are not retur
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
credit Rules, 2004 then manufacturer has to reverse the cenvat credit taken on inputs and when the goods are returned after 180 days then credit is to be taken once again. These are very good provision.
The new proviso substituted reads as follows:
PROVIDED FURTHER that if such inputs are not returned within a period of six months or the extended period , as the case may be, from the appointed day the input tax credit shall be liable to be recovered in terms of section 184.
Thus now in event of non return of goods within the stipulated time, section 184 will come into play for the recovery of tax. The section reads as follows:
Where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =