Suggestions on GST Acts (July 2017) by Institute of Chartered Accountants of India
48. Input tax credit in respect of inputs sent for job work
As per section 143 (3) & (4) of the CGST Act, if the goods sent to job worker are not received within stipulated time then, 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.
Issue
In case goods are received back subsequently i.e. after the period of 1/3 years, the levy of interest amount along with GST in such cases will be harsh to some extent.
Suggestion
It is therefore suggested that the section be amended as follows:
“if the goods sent to job worker are not received within stipulated time then, it shall be deemed that such inputs had been supplied by the principal to the job-worker on expiry of said stipulated time and issued invoice accordingly for which job worker be allowed to take credit.
Read ICAI Suggestions on GST Act to Govt : July 2017
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