Goyal Manufacturers, a registered person, instructs its one of the suppliers to send the input directly to Sumit Enterprises, who is a job worker, outside its factory premises for carrying out certain operations on the g

As per Section 19(2) of the CGST Act, 2017, the principal is entitled to take input tax credit of inputs sent for job work even if the said goods are directly sent to a job worker. Section 19(3) of the CGST Act, 2017 further stipulates that where the inputs are sent directly to a job worker but are not received back by the principal within a period of 1 year of the date of receipt of inputs by the job worker, it shall be deemed that such input had been supplied by the principal to the job worker on the day when the said inputs were received by the job worker. In view of aforementioned provisions, Goyal Manufacturers are eligible to take the input tax credit on the input goods directly received by the job worker from the suppliers. However, if the inputs are not returned by Sumit Enterprises within 1 year from 17.07.2018 (date of receipt of input goods by job worker), it shall be deemed that such input had been supplied by Goyal Manufacturers to Sumit Enterprises on 17.07.2018 and Goyal Manufacturers shall be liable to pay the tax along with applicable interest.