1.

Section 19 - Taking of input tax credit on inputs and capital goods sent for job work

2.

Rule 45 - Conditions and restrictions in respect of inputs and capital goods sent to the job worker

3.

Section 143 - Job work procedure

3.

Related notifications and circulars

Section 19 provides for condition and procedure for availing ITC on inputs and capital goods sent by Principal for job work

Section 19(1)

The principal shall

subject to such conditions and restrictions as may be prescribed [Refer S-143 Read with R-45]

be allowed ITC on inputs^[2(59)] sent to a job worker for job work^[2(68)]

Explanation– For this section, “principal” means the person referred to in section 143.

Section 19(2)

Notwithstanding anything contained in section 16(2)(b), [Condition of Receipts of Goods]

the principal shall be entitled to take ITC 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.

Principal can also send inputs/CG directly to the job-worker without bringing them to his premises and can still avail the credit of tax paid on such inputs or capital goods.

Section 19(4)

The principal shall

subject to such conditions and restrictions as prescribed in Rule 45

be allowed ITC on Capital Goods^[2(19)] sent to a job worker for job work

Section 19(5)

Notwithstanding anything contained in section 16(2)(b), [Condition of Receipts of Goods]

The principal shall be entitled to take ITC on Capital Goods even if the Capital Goods directly sent to a job worker for job work without being first brought to his place of business.

Section 19(3)

Where inputs sent for job work are

not received back by the principal after completion of job work or otherwise as per section 143(1)(a) or

not supplied from the place of job worker as per section 143(1)(b)

within 1 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 to job worker:

Provided that where the inputs are sent directly to a job worker, period of 1 year shall be counted from the date of receipt of inputs by the job worker.

Same provisions are provided in section 143(3). Refer guide on section 143

Section 19(6)

Where Capital Goods sent for job work

are not received back by the principal within 3 years of being sent out

it shall be deemed that such CG had been supplied by the principal to the job worker

on the day when the said capital goods were sent out to Job Worker:

Provided that where CG are sent directly to a job worker, 3 years shall be counted from the date of receipt of capital goods by the job worker.

Same provisions are provided in section 143(4). Refer guide on section 143

Deemed supply shall be declared in GSTR-1 of principal

Section 19(7)

Nothing contained in sub-section (3) or (6) shall apply to moulds and dies, jigs and fixtures, or tools sent out to a job worker for job work.

The provision of deemed supply is not applicable in case of moulds and dies, jigs and fixtures or tools supplied by the principal to job worker.

For complete provision related to job work, refer guide on section 143 of CGST ACT