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The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 19, verbatim (show)
* Section 19. Taking input tax credit in respect of inputs and capital goods sent for job work.-
(1) The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on inputs sent to a job worker for job work.
(2) Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, the principal shall be entitled to take credit of input tax on inputs even if the inputs are directly sent to a job worker for job work without being first brought to his place of business.
(3) Where the inputs sent for job work are not received back by the principal after completion of job work or otherwise or are not supplied from the place of business of the job worker in accordance with clause (a) or clause (b) of sub-section (1) of section 143 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:
Provided that where the inputs are sent directly to a job worker, the period of one year shall be counted from the date of receipt of inputs by the job worker.
(4) The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on capital goods sent to a job worker for job work.
(5) Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, the principal shall be entitled to take credit of input tax on capital goods even if the capital goods are directly sent to a job worker for job work without being first brought to his place of business.
(6) Where the capital goods sent for job work are not received back by the principal within a period of 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:
Provided that where the capital goods are sent directly to a job worker, the period of three years shall be counted from the date of receipt of capital goods by the job worker.
(7) Nothing contained in sub-section (3) or sub-section (6) shall apply to moulds and dies, jigs and fixtures, or tools sent out to a job worker for job work.
Explanation .- For the purpose of this section, "principal" means the person referred to in section 143.
*Enforced w.e.f. 1st July, 2017.
19(1)Credit on inputs
The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on inputs sent to a job worker for job work.Section 19(1)
The entitlement belongs to the principal identified through section 143. The linked prescribed conditions and restrictions are under rule 45.
Questions to answer on the file3 questions
19(2)Directly dispatched inputs
Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, the principal shall be entitled to take credit of input tax on inputs even if the inputs are directly sent to a job worker for job work without being first brought to his place of business.Section 19(2)
Sub-section (2) overrides the section 16(2)(b) receipt condition for this direct-dispatch entitlement. The inputs may go directly to the job worker rather than through the principal's business premises.
Questions to answer on the file2 questions
19(3) and provisoInputs and the one-year period
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 outSection 19(3) and proviso
The inputs must return after job work or otherwise, or be supplied from the job worker's premises under section 143(1)(a) or (b), within one year. Direct dispatch counts that year from receipt by the job worker. Failure triggers the dispatch-day deeming, subject to the sub-section (7) exclusion.
Questions to answer on the file6 questions
19(4)Credit on capital goods
The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on capital goods sent to a job worker for job work.Section 19(4)
The capital-goods entitlement belongs to the principal under section 143. Rule 45 provides the linked prescribed conditions and restrictions.
Questions to answer on the file3 questions
19(5)Directly dispatched capital goods
Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, the principal shall be entitled to take credit of input tax on capital goods even if the capital goods are directly sent to a job worker for job work without being first brought to his place of business.Section 19(5)
Sub-section (5) overrides the section 16(2)(b) receipt condition for the capital-goods entitlement. Prior arrival at the principal's business premises is unnecessary for this direct-dispatch rule.
Questions to answer on the file2 questions
19(6) and provisoCapital goods and three years
Where the capital goods sent for job work are not received back by the principal within a period of 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 outSection 19(6) and proviso
Direct dispatch counts the three years from the job worker's receipt of the capital goods. The resulting deeming uses the dispatch date, subject to the exclusion in sub-section (7).
Questions to answer on the file4 questions
19(7)Specified job-work equipment
Nothing contained in sub-section (3) or sub-section (6) shall apply to moulds and dies, jigs and fixtures, or tools sent out to a job worker for job work.Section 19(7)
Sub-section (7) overrides both time-based deeming rules for the listed items. The items must be sent to a job worker for job work.
Questions to answer on the file2 questions
19, ExplanationMeaning of principal
"principal" means the person referred to in section 143.Section 19, Explanation
Section 143 identifies the person who holds the entitlements and obligations here. It also supplies the onward-supply route referred to for inputs in sub-section (3).
Other questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope the section as a whole and its Explanation
Questions to answer on the file1 question
Frequently asked questions
Must inputs first reach the principal's premises for direct-dispatch credit?
No. Sub-section (2) overrides section 16(2)(b) and permits credit where inputs go directly to the job worker. The principal remains the person taking that credit.
Section 19(2)
When does the period start for direct dispatch?
It starts on receipt by the job worker. The period is one year for inputs and three years for capital goods under the respective provisos.
Section 19(3) and 19(6), provisos
What date does the time-based deemed supply use?
It uses the day the goods were sent out. The applicable time and return or onward-supply conditions must first trigger sub-section (3) or (6), subject to sub-section (7).
Section 19(3) and 19(6)
Are moulds and dies subject to the time-based deeming here?
No. Sub-section (7) excludes moulds and dies, jigs and fixtures, and tools sent for job work from sub-sections (3) and (6).
Section 19(7)
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Rule 45 of the CGST Rules, 2017 | 19(1) prescribed by rule 45 of the CGST Rules 2017 | 19(1) "subject to such conditions and restrictions as may be prescribed" |
| Section 16 | Section 16 16(2)(b) overridden by 19(2) | 19(2) "Notwithstanding anything contained in clause (b) of sub-section (2) of section 16" |
| Section 16 | Section 16 16(2)(b) overridden by 19(5) | 19(5) "Notwithstanding anything contained in clause (b) of sub-section (2) of section 16" |
| Section 143 | 19(3) requires Section 143 | 19(3) "in accordance with clause (a) or clause (b) of sub-section (1) of section 143" |
| Section 143 | this provision defined by Section 143 | Explanation "For the purpose of this section, 'principal' means the person referred to in section 143" |
Circulars and notifications
No circular or notification in the CBIC repository is recorded as citing this section.
Unsettled questions
The words of section 19 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.
- Nothing in section 19 was found to be left open in a way the statute does not itself close. The periods, the deeming, the counting rule in each proviso and the exclusion in sub-section (7) are all stated.
See also
- Section 16 of the CGST Act, 2017: eligibility and conditions for taking input tax credit
- Section 143 of the CGST Act, 2017: job work procedure
- Rule 45 of the CGST Rules, 2017: conditions and restrictions in respect of inputs and capital goods sent to the job worker
- Rule 55 of the CGST Rules, 2017: transportation of goods without issue of invoice
References
- Central Board of Indirect Taxes and Customs. "Section 19. Taking input tax credit in respect of inputs and capital goods sent for job work". Central Goods and Services Tax Act, 2017, CBIC tax information portal. Retrieved 17 September 2026.
External links
- CGST Act, 2017, Section 19 on the CBIC tax information portal