Chapter - V of CGST Rules, 2017

INPUT TAX CREDIT

  

RULE 45. Conditions and restrictions in respect of inputs and capital goods  2(19)
“capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business;
sent to the job worker
(corresponding section 19)                                                                                                                                           

(1) The inputs, semi-finished goods or capital goods  2(19)
“capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business;
shall be sent to the job worker under the cover of a challan issued by the principal, including where such goods are sent directly to a job-worker 2[and where the goods are sent from one job worker to another job worker, the challan may be issued either by the principal or the job worker sending the goods to another job worker: Provided that the challan issued by the principal may be endorsed by the job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal: Provided further that the challan endorsed by the job worker may be further endorsed by another job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal.]

(2) The challan issued by the principal to the job worker shall contain the details specified in rule 55.

*(3) The details of challans in respect of goods dispatched to a job worker or received from a job worker [helldod 3omit[or sent from one job worker to another]helldod] 4[during a specified period] [helldod old[during a quarter] helldod] shall be included in  FORM GST ITC-04 furnished for that period on or before the twenty-fifth day of the month succeeding 4[the said period] [helldod old[the said quarter] helldod] 1[or within such further period as may be extended by the Commissioner by a notification in this behalf:

Provided that any extension of the time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.]

5[Explanation. - For the purposes of this sub-rule, the expression “specified period” shall mean.-

(a) the period of six consecutive months commencing on the 1st day of April and the 1st day of October in respect of a principal whose aggregate turnover  “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess; during the immediately preceding financial year exceeds five crore rupees; and

(b) a financial year in any other case.”;]

(4) Where the inputs or capital goods  2(19)
“capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business;
are not returned to the principal within the time stipulated in section 143, it shall be deemed that such inputs or capital goods  2(19)
“capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business;
had been supplied by the principal to the job worker on the day when the said inputs or capital goods  2(19)
“capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business;
were sent out and the said supply shall be declared in FORM GSTR-1 and the principal shall be liable to pay the tax along with applicable interest.

Explanation.- For the purposes of this Chapter,-

(1) the expressions 'capital goods  2(19)
“capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business;
' shall include 'plant and machinery' as defined in the Explanation to section 17;

(2) for determining the value of an exempt supply as referred to in sub-section (3) of section 17-

    (a) the value of land and building shall be taken as the same as adopted for the purpose of paying stamp duty; and

    (b) the value of security shall be taken as one per cent. of the sale value of such security.

1 Inserted Vide Notification No.51/2017-Central Tax Dt. 28/10/2017-[Para 2 (ii)]

2 Inserted Vide Notification No.14/2018-Central Tax ,Dt. 23/03/2018-[Para 2 (i)]

3. Omitted Vide Notification No.74/2018-Central Tax ,Dt. 31/12/2018-[Para 3]

4. Substituted Vide: Notification No.35/2021-Central Tax dt. 24.09.2021  (w.e.f dt. 01/10/2021)

5. Inserted Vide: Notification No.35/2021-Central Tax dt. 24.09.2021  (w.e.f dt. 01/10/2021)

 

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