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

Input tax credit for jobwork: principals claim credit for inputs and capital goods sent directly; delayed return triggers deemed supply.

The principal is entitled to input tax credit on inputs and capital goods sent to a job worker, including when sent directly to the job worker; if such inputs are not returned or supplied from the job worker's place within the prescribed period they are deemed to have been supplied by the principal on the date sent, with an analogous deemed-supply rule for capital goods. Moulds and dies, jigs and fixtures, and tools are excluded from the deemed-supply provisions. 'Principal' is defined in the referenced provision.