Question 22 - What is the liability of the principal if the capital goods sent to job worker have not been received within 2 years from the date of being sent?
FAQ on GST dated 21.9.2016 based on Draft Model GST Chapter 10 Input Tax Credit
📋
Contents
Cases Cited
Referred In
Notifications
Circulars
Forms
Manuals
Acts
Rules & Regulations
Case Laws New
Ref Provisions New
Plus +
Source NTF
Summary
Similar
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
Principal liability: repay input credit with interest when capital goods sent to job worker are not returned in two years. Principal liability arises where capital goods sent to a job worker are not received back within two years: the principal must pay an amount equal to the input tax credit claimed on those capital goods along with interest, and may reclaim the credit on actual receipt of the goods.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Principal liability: repay input credit with interest when capital goods sent to job worker are not returned in two years.
Principal liability arises where capital goods sent to a job worker are not received back within two years: the principal must pay an amount equal to the input tax credit claimed on those capital goods along with interest, and may reclaim the credit on actual receipt of the goods.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.