Section 19 – Taking ITC in respect of inputs and capital goods sent for job work
Section 19 of CGST Act, 2017 – Taking Input Tax Credit in respect of Inputs and Capital Goods sent for Job Work
Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant
1. Bare Act Text – Section 19
Section 19(1):
The principal shall be entitled to take credit of input tax
on inputs sent to a job worker for job work.
Section 19(2):
The principal may take input tax credit on inputs
even if such inputs are sent directly to a job worker
without being first brought to his place of business.
Section 19(3):
Where the inputs sent for job work are not returned
to the principal 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.
Section 19(4):
The principal shall be entitled to take credit of input tax
on capital goods sent to a job worker for job work.
Section 19(5):
The principal may take input tax credit on capital goods
even if such capital goods are sent directly to a job worker
without being first brought to his place of business.
Section 19(6):
Where the capital goods sent for job work are not returned
to the principal within 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.
2. Objective of Section 19
Section 19 facilitates smooth conduct of manufacturing and processing activities through job work without blocking input tax credit.
It ensures that ITC is not denied merely because goods are sent outside the principal’s premises for processing.
3. Meaning of Job Work
As per Section 2(68), job work means any treatment or process undertaken by a person on goods belonging to another registered person.
The owner of goods is called the principal, and the processor is the job worker.
4. ITC on Inputs Sent for Job Work – Section 19(1) & (2)
ITC is allowed even when:
- Inputs are sent to job worker
- Inputs are sent directly from supplier to job worker
There is no requirement to bring goods first to the principal’s premises.
5. One-Year Time Limit for Inputs – Section 19(3)
Inputs sent for job work must be:
- Returned to principal, or
- Supplied from job worker’s premises
within one year from the date of being sent.
Failure to comply results in:
- Deemed supply by principal to job worker
- GST payable with interest
6. ITC on Capital Goods Sent for Job Work – Section 19(4) & (5)
ITC on capital goods is allowed even when capital goods are sent directly to job worker.
This excludes:
- moulds
- dies
- jigs
- fixtures
- tools
These items are not subject to the return condition.
7. Three-Year Time Limit for Capital Goods – Section 19(6)
Capital goods (other than excluded items) must be returned within three years.
Otherwise, it is treated as deemed supply on the original date of dispatch.
8. Relevant CGST Rules for Section 19
- Rule 45 – Conditions and procedure for job work
- Rule 55 – Delivery challan
- Rule 138 – E-Way Bill provisions
9. Compliance Requirements
- Issue delivery challan for job work
- File Form ITC-04 (where applicable)
- Track time limits carefully
- Maintain job work records
10. Common Practical Issues
- Failure to monitor one-year / three-year timelines
- Non-filing or delayed filing of ITC-04
- Improper challan details
- Mismatch between stock and returns
11. Related Provisions
12. Professional Tip
Always maintain a job work ageing register. Deemed supply under Section 19 can create unexpected tax and interest liability if timelines are ignored.
Disclaimer: This article is prepared based on the CGST Act, CGST Rules, notifications and prevailing legal position as applicable till date.
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