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

Input tax credit on job-work allowed to principals even when goods are sent directly to job-workers, subject to time limits.

Allowance of input tax credit to a principal is permitted for inputs and capital goods sent to a job-worker for job-work, including when dispatched directly to the job-worker, subject to prescribed conditions. If such inputs or capital goods are not returned or supplied from the job-worker's premises within the applicable time limits they are deemed to have been supplied by the principal on the date of dispatch, with the direct-send period measured from the job-worker's receipt. The deeming rule excludes moulds and dies, jigs and fixtures, and tools.