Re - Credit under Job Work

[Kaustubh Karandikar]

What is the relevant Section / Rule under which re – credit can be taken of the GST paid on inputs not received back from the job worker within the prescribed time limit but received subsequently?

AI Summary

GST Inputs from Job Worker: Issue Invoice Under Section 16, Pay GST with Interest for Late Returns A discussion forum addressed a query about the relevant section or rule for taking re-credit of GST paid on inputs not returned from a job worker within the prescribed time but received later. It was clarified that under Section 16 of the CGST Act, the principal must issue an invoice for such inputs, treating them as a supply, and pay GST with interest. The job worker, if registered, can claim input tax credit (ITC) based on this invoice. It was noted that this process is not re-credit but the initial credit claim by the job worker.