Section 19 of CGST Act, 2017 : Section 19: Taking Input Tax Credit In Respect Of Inputs And Capital Goods Sent For Job Work

Explanation using Example

Imagine a company, 'ABC Fashions', which manufactures garments. The company sends raw fabric to a job worker, 'XYZ Tailors', for stitching and embroidery. According to Section 19(1) of the Central Goods and Services Tax Act, 2017, 'ABC Fashions' can claim input tax credit on the GST paid for the raw fabric sent to 'XYZ Tailors' for the job work.

Moreover, under Section 19(2), 'ABC Fashions' is entitled to take the input tax credit even if they send the fabric directly to 'XYZ Tailors' without bringing i...

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