Taking input tax credit in respect of inputs and capital goods sent for job work

 

Section 19 of CGST Act,2017 Taking input tax credit in respect of inputs and capital goods sent for job work

 

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The below post explains about Taking input tax credit in respect of inputs and capital goods sent for job work under section 19 of CGST Act,2017.

 

Section 19 of CGST Act, 2017 explains Taking input tax credit in respect of inputs and capital goods sent for job work as below: (The amendments if any will also be updated here soon).

 

The extract of Section 19 of CGST Act,2017 quoted below:

 

19 Taking input tax credit in respect of inputs and capital goods sent for job work.

 

19. (1) The principal shall, subject to such conditions and restrictions as may be

prescribed, be allowed input tax credit on inputs sent to a job-worker for job-work.

(2) Notwithstanding anything contained in clause (b) of sub-section (2) of section 16,

Taking input tax credit in respect of inputs and capital goods sent for job workthe principal shall be entitled to take credit of input tax on inputs even if the inputs are

directly sent to a job worker for job-work without being first brought to his place of business.

(3) Where the inputs sent for job work are not received back by the principal after

completion of job-work or otherwise or are not supplied from the place of business of the job

worker in accordance with clause (a) or clause (b) of sub-section (1) of section 143 within

one year of being sent out, it shall be deemed that such inputs had been supplied by the

principal to the job-worker on the day when the said inputs were sent out:

Provided that where the inputs are sent directly to a job worker, the period of one year

shall be counted from the date of receipt of inputs by the job worker.

(4) The principal shall, subject to such conditions and restrictions as may be prescribed,

be allowed input tax credit on capital goods sent to a job worker for job work.

(5) Notwithstanding anything contained in clause (b) of sub-section (2) of section 16,

the principal shall be entitled to take credit of input tax on capital goods even if the capital

goods are directly sent to a job worker for job-work without being first brought to his place

of business.

 

(6) Where the capital goods sent for job work are not received back by the principal

within a period of three years of being sent out, it shall be deemed that such capital goods

had been supplied by the principal to the job worker on the day when the said capital goods

were sent out:

Provided that where the capital goods are sent directly to a job worker, the period of

three years shall be counted from the date of receipt of capital goods by the job worker.

(7) Nothing contained in sub-section (3) or sub-section (6) shall apply to moulds and

dies, jigs and fixtures, or tools sent out to a job worker for job work.

Explanation.––For the purpose of this section, “principal” means the person referred

to in section 143.

 

The above information clarifies about Taking input tax credit in respect of inputs and capital goods sent for job work under section 19 of CGST Act,2017.  

 

If you have any comments about Section 19 of CGST Act, 2017 explaining Taking input tax credit in respect of inputs and capital goods sent for job work, share below your thoughts:

 

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