(1) Where any inputs received at a place of business had been desptached as such
or desptached after being partially processed to a job worker for further processing, testing,
repair, reconditioning or any other purpose in accordance with the provisions of existing
law prior to the appointed day and such inputs are returned to the said place on or after the
appointed day, no tax shall be payable if such inputs, after completion of the job work or
otherwise, are returned to the said place within six months from the appointed day:
Provided that the period of six months may, on sufficient cause being shown, be
extended by the Commissioner for a further period not exceeding two months:
Provided further that if such inputs are not returned within a period of six months or
the extended period from the appointed day, the input tax credit shall be liable to be recovered
in accordance with the provisions of clause (a) of sub-section (8) of section 142 of the
Central Goods and Services Tax Act.
(2) Where any semi-finished goods had been despatched from any place of business
to any other premises for carrying out certain manufacturing processes in accordance with
the provisions of existing law prior to the appointed day and such goods (hereinafter in this
section referred to as ‘‘the said goods’’) are returned to the said place on or after the appointed
day, no tax shall be payable if the said goods, after undergoing manufacturing processes or
otherwise, are returned to the said place within six months from the appointed day:
Provided that the period of six months may, on sufficient cause being shown, be
extended by the Commissioner for a further period not exceeding two months:
Provided further that if the said goods are not returned within a period specified in
this sub-section, the input tax credit shall be liable to be recovered in accordance with the
provisions of clause (a) of sub-section (8) of section 142 of the Central Goods and Services
Tax Act:
Provided also that the person despatching the goods may, in accordance with the
provisions of the existing law, transfer the said goods to the premises of any registered
person for the purpose of supplying therefrom on payment of tax in India or without payment
of tax for exports within six months or the extended period, as the case may be, from the
appointed day.
(3) Where any goods had been despatched from the place of business without payment
of tax for carrying out tests or any other process to any other premises, whether registered
or not, in accordance with the provisions of existing law prior to the appointed day and
such goods are returned to the said place of business on or after the appointed day, no tax
shall be payable if the said goods, after undergoing tests or any other process, are returned
to such place within six months from the appointed day:
Provided that the period of six months may, on sufficient cause being shown, be
extended by the Commissioner for a further period not exceeding two months:
Provided further that if the said goods are not returned within the period specified in
this sub-section, the input tax credit shall be liable to be recovered in accordance with the
provisions of clause (a) of sub-section (8) of section 142 of the Central Goods and Services
Tax Act:
Provided also that the person despatching the goods may, in accordance with the
provisions of the existing law, transfer the said goods from the said other premises on
payment of tax in India or without payment of tax for exports within six months or the
extended period, as the case may be, from the appointed day.
(4) The tax under sub-sections (1), (2) and (3) shall not be payable only if the person
despatching the goods and the job worker declare the details of the inputs or goods held in
stock by the job worker on behalf of the said person on the appointed day in such form and
manner and within such time as may be prescribed.