Question ID :
44832
038118
JOB WORK CAPITAL GOODS TO RETURN IN 3 YEARS
Dear Experts
For our pharmaceutical client, wherein equipments were send to job worker / Loan Licence sites
it has been advised to get such equipments back max in 3 years else revese ITC availed
quoting sections 143 & 16
According to Section 143 of the CGST Act, capital goods sent to a job worker must be returned to the principal within three years from the date of being sent out. If not returned within this period, it is deemed as a supply from the principal to the job worker, and GST is applicable.
As per Section 16 of the CGST Act, you can claim ITC on capital goods sent to job workers, provided they are returned within the stipulated period. If the capital goods are not returned within three years, the ITC claimed may need to be reversed.
while business manufacturing and job work agreement are continuing and can be supported with jobwork in and job work outward challans, still institing on physical movements is somewhat hard to belive
Please suggest way out if any or physical take back and re-send is the only option
posted by
VIPUL JHAVERI
on
Mar 28 2025 12:00AM