Possible solution wherein Capital goods cannot be brought back with in 3 year (5 year) from premises of Job worker - Goods and Services Tax - GST

Possible solutions (practical way out) in case capital goods sent to Job worker can not be received back in 3 years (plus 2 years extension) Hi All, Would request your inputs on the above captioned matter, have encapsulated facts and my point of view below: Facts of the case: X Ltd has sent a capital goods (plant and machinery) to their job worker for job work process (say on 1 May 2022). Plant and Machinery was required to be embedded in the ground and cannot be moved easily. The contract with the job worker was a long-term contract for more than 5 years and it is not commercial feasible to dismantle the machinery and bring it back and then re-send the same to the job work. Further, as required under GST laws, capital goods are required to be brought back within the period of 3 years with possible extension of 2 more years. In case the same is not brought back, GST is to be payable along with applicable interest. Keeping the above in mind, X Ltd is envisaging any practical approach that conditions of GST laws are meet and there is no requirement of any physical movement of the machinery as well. Possible Solutions: X Ltd purchases the machinery and transfers the same to job worker [no under work agreement] as a leased asset [for future contracts] X Ltd purchases the machinery, capitalizes the same in their book and takes input credit of the same. Further, X ltd enters into lease agreement with Job work to send the machinery on lease of say 10 years to Job worker on a nominal lease rent of INR 5000/-. This would be a separate agreement apart from job worker agreement and, Job Worker (Y Ltd) would raise only invoice on X Ltd for their service charge + lease rent along with GST and X Ltd would be issuing a monthly invoice on Y Ltd for the lease rent of INR 5000/- plus GST. In the above situation, is there any implications under GST laws, any issue the authority may raise from valuation point. Positive of the above arrangement would be that condition of 3 years under section 143 is not required to be adhered. Transfer of Machinery to job worker [in papers] X Ltd transfers the ownership of machinery to Job worker before closure of 3 years i.e., for agreed term and bring the machinery back to X Ltd post closure of loan period. Would there be any requirement to bring the machinery back physically back to premises of X Ltd. In the above, we don t envisage any other GST implications apart from issuing a DC [paper document only] as a record for ITC-04 . Supply Machinery to Job worker and raise credit note on the same date, post which two DC can be issued [paper document] X Ltd supplies the machinery to job worker and raises credit note on the same day. Further, a DC is issued by job worker [paper document] and a DC is issued by X Ltd as well [paper document] This will allow to extend the time of machinery being kept by job worker for further 3+2 years. Restructuring the arrangement as follows: The arrangement can be restructured as follows: Machinery on the day one is to be purchased by job worker: Option 1: Job worker then enters into agreement with X ltd either to sale of Machinery to X Ltd on cost-to-cost basis and the agreement specifically mentions that machinery physically remains with job worker. Option 2: Job worker loans the machinery to X Ltd. X Ltd pays a certain amount to job worker for which can be equivalent to EMI of the machinery being barred by Job worker on behalf of X Ltd. Apart from the above, please also brief on the process to obtain extension of 2 years and would it be feasible to obtain a advance ruling in the above case. Additionally, if there is any possible solution, please feel free to discuss and share