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
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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 ... Summary
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.
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