Amended and updated notes on section 19 of CGST Act, 2017. Detail discussion on provisions and rules related to taking input tax credit in respect of inputs and capital goods sent for job work.
Chapter V (Sections 16–21) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to input tax credit. Section 19 of CGST 2017 provides for taking input tax credit in respect of inputs and capital goods sent for job work.
Recently, we have discussed in detail section 18 (Availability of credit in special circumstances) of CGST Act 2017. Today, we learn the provisions of section 19 of Central GST Act 2017.
Section 19 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 19 is 1-7-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | V |
| Chapter Name | Input Tax Credit |
| Section No. | 19 |
| Section Name | Taking input tax credit in respect of inputs and capital goods sent for job work |
| Updated 2024 Edition | GST Law Book PDF |
Relevant Rules and Forms for GST Section 19:
- Rule 45: Conditions and restrictions in respect of inputs and capital goods sent to the job worker
- FORM GST ITC-04: Details of goods/capital goods sent to job worker and received back
Section 19 of Central GST – Taking input tax credit in respect of inputs and capital goods sent for job work1
Section 19 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.
Section 19(1) of CGST Act
Section 19(1): The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on inputs sent to a job worker for job work.
Section 19(2) of CGST Act
Section 19(2): Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, the principal shall be entitled to take credit of input tax on inputs even if the inputs are directly sent to a job worker for job work without being first brought to his place of business.
Section 19(3) of CGST Act
Section 19(3): Where the inputs sent for job work are not received back by the principal after completion of job work or otherwise or are not supplied from the place of business of the job worker in accordance with clause (a) or clause (b) of sub-section (1) of section 143 within one year of being sent out, it shall be deemed that such inputs had been supplied by the principal to the job worker on the day when the said inputs were sent out:
Provided that where the inputs are sent directly to a job worker, the period of one year shall be counted from the date of receipt of inputs by the job worker.
Section 19(4) of CGST Act
Section 19(4): The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on capital goods sent to a job worker for job work.
Section 19(5) of CGST Act
Section 19(5): Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, the principal shall be entitled to take credit of input tax on capital goods even if the capital goods are directly sent to a job worker for job work without being first brought to his place of business.
Section 19(6) of CGST Act
Section 19(6): Where the capital goods sent for job work are not received back by the principal within a period of three years of being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job worker on the day when the said capital goods were sent out:
Provided that where the capital goods are sent directly to a job worker, the period of three years shall be counted from the date of receipt of capital goods by the job worker.
Section 19(7) of CGST Act
Section 19(7): Nothing contained in sub-section (3) or sub-section (6) shall apply to moulds and dies, jigs and fixtures, or tools sent out to a job worker for job work.
Explanation: For the purpose of this section, “principal” means the person referred to in section 143.
- Section 19 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎