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ITC on inputs and capital goods sent for job work

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

  • The time limit prescribed for the return of goods sent to job work under the exemption route is 1 year of being sent out (for inputs) and 3 years of being sent out (for capital goods).
  • Therefore, if the inputs/ capital goods are returned to the principal after 1 year/ 3 years (as applicable), then such return of goods to the principal after the said period would be treated as ‘supply’. This time limit is not applicable to molds and dies, jigs, fixtures, and tools. 

Input Tax Credit in case Goods directly send to the Job worker

Section 19(2) and Section 19 (5) allows the principal to take input tax credit of goods not received by him, if the goods are sent directly to the job workers premises by the vendor. 

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