ITC avialable for job worker

[RAMKUMAR DURAI]

sir my client is engaged in adhesive coating on the fasteners sent from his cutomers. as you replied earlier it may be classified under job work service. we have a doubt that if we raise the invoice as job work @ 12% GST, whether we will be eligible for ITC on the adhesive which we purchase. Because the adhesives comes to nearly 50% of our invoice value and we buy them at 18% & 28% GST respectively.

[Atul Rathod]

Eligible for ITC- no restrictions.

[KASTURI SETHI]

ITC is admissible. No doubt at all. It is in the course of business.

AI Summary

Client Can Claim ITC on Adhesives at 18% and 28% GST for Job Work Invoiced at 12% GST A client engaged in adhesive coating on fasteners, classified as a job work service, inquired about the eligibility for Input Tax Credit (ITC) on adhesives purchased at 18% and 28% GST. The concern was whether raising invoices at 12% GST for job work would affect ITC eligibility. Two responses confirmed that ITC is admissible without restrictions, as the purchase of adhesives is in the course of business.