TaxTMI 
TaxTMI 
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?
Re - Credit under Job Work
09 Feb 2023 
6 Replies 
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Deemed supply on job work: principal must invoice and pay GST with interest, enabling job worker to claim input tax credit.
When inputs sent to a job worker are not returned within the prescribed time they are a deemed supply; the principal must raise an invoice on the job worker and pay tax with interest, enabling the registered job worker to claim input tax credit on that invoice. On return of inputs the job worker invoices the principal and the principal may avail ITC under the usual eligibility rules. Payment under the statutory provision is distinct from an ITC reversal mechanism. (AI Summary)
When inputs sent to a job worker are not returned within the prescribed time they are a deemed supply; the principal must raise an invoice on the job worker and pay tax with interest, enabling the registered job worker to claim input tax credit on that invoice. On return of inputs the job worker invoices the principal and the principal may avail ITC under the usual eligibility rules. Payment under the statutory provision is distinct from an ITC reversal mechanism. (AI Summary)