Rule

Description

 

36.

Documentary requirements and conditions for claiming input tax
credit

(1)

The
input tax credit shall be availed by a registered person, including the Input
Service Distributor, on the basis of any of the following documents, namely,-

(a)  an invoice issued by
the supplier of goods or services or both in accordance with the provisions
of section 31;

(b)  an invoice issued in
accordance with the provisions of clause (f) of sub-section (3) of section
31, subject to the payment of tax;

(c)  a debit note issued
by a supplier in accordance with the provisions of section 34;

(d)  a bill of entry or
any similar document prescribed under the Customs Act, 1962 or rules made
thereunder for the assessment of integrated tax on imports;

(e)  an Input Service
Distributor invoice or Input Service Distributor credit note or any document
issued by an Input Service Distributor in accordance with the provisions of
sub-rule (1) of rule 54

(2)

Input
tax credit shall be availed by a registered person only if all the applicable
particulars as specified in the provisions of Chapter VI are contained in the
said document, and the relevant information, as contained in the said
document, is furnished in FORM GSTR-2
by such person.

Provided
that if the said document does not contain all the specified particulars but
contains the details of the amount of tax charged, description of goods or
services, total value of supply of goods or services or both, GSTIN of the
supplier and recipient and place of supply in case of inter-State supply,
input tax credit may be availed by such registered person.
[Notification No. 39/2018]

(3)

No
input tax credit shall be availed by a registered person in respect of any
tax that has been paid in pursuance of any order where any demand has been
confirmed on account of any fraud, willful misstatement or suppression of
facts.

37.

Reversal of input tax credit in the case of non-payment of
consideration

(1)

A registered
person, who has availed of input tax credit on any inward supply of goods or
services or both, but fails to pay to the supplier thereof, the value of such
supply along with the tax payable thereon, within the time limit specified in
the second proviso to sub-section (2) of section 16, shall furnish the
details of such supply, the amount of value not paid and the amount of input
tax credit availed of proportionate to such amount not paid to the supplier
in FORM GSTR-2 for the month
immediately following the period of one hundred and eighty days from the date
of the issue of the invoice:

Provided
that the value of supplies made without consideration as specified in
Schedule I of the said Act shall be deemed to have been paid for the purposes
of the second proviso to sub- section (2) of section 16.

Provided
further that the value of supplies on account of any amount added in
accordance with the provisions of section 15(2)(b) shall be deemed to have
been paid for the purposes of the second proviso to section 16(2).
[Notification No.26/2018]

(2)

The
amount of input tax credit referred to in sub-rule (1) shall be added to the
output tax liability of the registered person for the month in which the
details are furnished.

(3)

The
registered person shall be liable to pay interest at the rate notified under sub-

section
(1) of section 50 for the period starting from the date of availing credit on
such supplies till the date when the amount added to the output tax
liability, as mentioned in sub-rule (2), is paid.

(4)

The
time limit specified in sub-section (4) of section 16 shall not apply to a
claim for re- availing of any credit, in accordance with the provisions of
the Act or the provisions of this Chapter, that had been reversed earlier.

38.

Claim of credit by a banking company or a financial
institution

 

A
banking company or a financial institution, including a non-banking financial
company, engaged in the supply of services by way of accepting deposits or
extending loans or advances that chooses not to comply with the provisions of
sub-section (2) of section 17, in accordance with the option permitted under
sub-section (4) of that section, shall follow the following procedure,
namely,-

(a) the said company or
institution shall not avail the credit of,-

(i)  the tax paid on
inputs and input services that are used for non-business purposes; and

(ii) the credit
attributable to the supplies specified in sub-section (5) of section 17, in FORM GSTR-2;

(b) the said company or
institution shall avail the credit of tax paid on inputs and input services
referred to in the second proviso to sub-section (4) of section 17 and not
covered under clause (a);

(c) fifty per cent. of
the remaining amount of input tax shall be the input tax credit admissible to
the company or the institution and shall be furnished in FORM GSTR-2;

(d) the amount referred
to in clauses (b) and (c) shall, subject to the provisions of sections 41, 42
and 43, be credited to the electronic credit ledger of the said company or
the institution.

39.

Procedure for distribution of input tax credit by Input
Service Distributor

(1)

An
Input Service Distributor shall distribute input tax credit in the manner and
subject to the following conditions, namely,-

(a) the input tax credit
available for distribution in a month shall be distributed in the same month
and the details thereof shall be furnished in FORM GSTR-6 in accordance with the provisions of Chapter VIII of
these rules;

(b) the Input Service
Distributor shall, in accordance with the provisions of clause (d),
separately distribute the amount of ineligible input tax credit (ineligible
under the provisions of sub-section (5) of section 17 or otherwise) and the
amount of eligible input tax credit;

(c) the input tax credit
on account of central tax, State tax, Union territory tax and integrated tax
shall be distributed separately in accordance with the provisions of clause
(d);

(d) the input tax credit
that is required to be distributed in accordance with the provisions of
clause (d) and (e) of sub-section (2) of section 20 to one of the recipients
‘R1’, whether registered or not, from amongst the total of all the recipients
to whom input tax credit is attributable, including the recipient(s) who are
engaged in making exempt supply, or are otherwise not registered for any
reason, shall be the amount, “C1”, to be calculated by applying the following
formula –

C1 = (t1÷T) × C

where,

“C”
is the amount of credit to be distributed,

“t1”
is the turnover, as referred to in section 20, of person R1 during the
relevant period, and

“T”
is the aggregate of the turnover, during the relevant period, of all
recipients to whom the input service is attributable in accordance with the
provisions of section 20;

(e) the input tax credit
on account of integrated tax shall be distributed as input tax credit of
integrated tax to every recipient;

(f) the input tax credit
on account of central tax and State tax or Union territory tax shall-

(i)  in respect of a recipient located in the same
State or Union territory in which the Input Service Distributor is located,
be distributed as input tax credit of central tax and State tax or Union
territory tax respectively;

(ii) in respect of a recipient located in a State
or Union territory other than that of the Input Service Distributor, be
distributed as integrated tax and the amount to be so distributed shall be
equal to the aggregate of the amount of input tax credit of central tax and
State tax or Union territory tax that qualifies for distribution to such
recipient in accordance with clause (d);

(g) the Input Service
Distributor shall issue an Input Service Distributor invoice, as prescribed
in sub-rule (1) of rule 54, clearly indicating in such invoice that it is
issued only for distribution of input tax credit;

(h) the Input Service
Distributor shall issue an Input Service Distributor credit note, as
prescribed in sub-rule (1) of rule 54, for reduction of credit in case the
input tax credit already distributed gets reduced for any reason;

(i)  any additional
amount of input tax credit on account of issuance of a debit note to an Input
Service Distributor by the supplier shall be distributed in the manner and
subject to the conditions specified in clauses (a) to (f) and the amount
attributable to any recipient shall be calculated in the manner provided in
clause (d) and such credit shall be distributed in the month in which the
debit note is included in the return in FORM
GSTR-6
;

(j) any input tax credit required to be reduced on account of
issuance of a credit note to the Input Service Distributor by the supplier
shall be apportioned to each recipient in the same ratio in which the input
tax credit contained in the original invoice was distributed in terms of
clause (d), and the amount so apportioned shall be-

(i)  reduced from the amount to be distributed in
the month in which the credit note is included in the return in FORM GSTR-6; or

(ii) added to the output tax liability of the
recipient where the amount so apportioned is in the negative by virtue of the
amount of credit under distribution being less than the amount to be
adjusted.

(2)

If
the amount of input tax credit distributed by an Input Service Distributor is
reduced later on for any other reason for any of the recipients, including
that it was distributed to a wrong recipient by the Input Service
Distributor, the process specified in clause (j) of sub-rule (1) shall apply,
mutatis mutandis, for reduction of credit.

(3)

Subject
to sub-rule (2), the Input Service Distributor shall, on the basis of the
Input Service Distributor credit note specified in clause (h) of sub-rule
(1), issue an Input Service Distributor invoice to the recipient entitled to
such credit and include the Input Service Distributor credit note and the
Input Service Distributor invoice in the return in FORM GSTR-6 for the month in which such credit note and invoice
was issued.

40.

Manner of claiming credit in special circumstances

(1)

The
input tax credit claimed in accordance with the provisions of sub-section (1)
of section 18 on the inputs held in stock or inputs contained in
semi-finished or finished goods held in stock, or the credit claimed on
capital goods in accordance with the provisions of clauses (c) and (d) of the
said sub-section, shall be subject to the following conditions, namely,-

(a) the input tax credit on capital goods, in terms of clauses
(c) and (d) of sub-section (1) of section 18, shall be claimed after reducing
the tax paid on such capital goods by five percentage points per quarter of a
year or part thereof from the date of the invoice or such other documents on
which the capital goods were received by the taxable person.

(b) the registered person shall within a period of 30 days
from the date of his becoming eligible to avail the ITC u/s 18(1) or within
such further period as may be extended by the Commissioner by a notification
in this behalf shall make a declaration, electronically, on the common portal
in FORM GST ITC-01 to the effect
that he is eligible to avail the input tax credit as aforesaid.

The
time limit for filing in FORM GST
ITC-01
, by the registered persons, who have become eligible during the
months of July-November
2017, to the effect that they are eligible to avail the input
tax credit u/s 18(1) of the said Act, is extended till 31-Jan-18.
[Notification No.67/2017]

The
time limit for filing FORM GST ITC-01,
by registered persons who have filed the application in FORM GST-CMP-04 in between the 2nd to 31st March-18,
is extended till 04-Oct-18.
[Notification No.42/2018]

(c) the declaration under clause (b) shall clearly specify the
details relating to the inputs held in stock or inputs contained in
semi-finished or finished goods held in stock, or as the case may be, capital
goods–

(i) on the day immediately preceding the date from which he
becomes liable to pay tax under the provisions of the Act, in the case of a
claim under clause (a) of sub-section (1) of section 18;

(ii) on the day immediately preceding the date of the grant of
registration, in the case of a claim under clause (b) of sub-section (1) of
section 18;

(iii) on the day immediately preceding the date from which he
becomes liable to pay tax under section 9, in the case of a claim under
section 18(1) (c);

(iv) on the day immediately preceding the date from which the
supplies made by the registered person becomes taxable, in the case of a
claim under clause (d) of sub-section (1) of section 18;

(d) the details furnished in the declaration under clause (b)
shall be duly certified by a practicing chartered accountant or a cost
accountant if the aggregate value of the claim on account of central tax,
State tax, Union territory tax and integrated tax exceeds two lakh rupees;

(e) the input tax credit claimed in accordance with the
provisions of clauses (c) and (d) of sub-section (1) of section 18 shall be
verified with the corresponding details furnished by the corresponding
supplier in FORM GSTR-1 or as the
case may be, in FORM GSTR- 4, on
the common portal.

(2)

The
amount of credit in the case of supply of capital goods or plant and
machinery, for the purposes of sub-section (6) of section 18, shall be
calculated by reducing the input tax on the said goods at the rate of five
percentage points for every quarter or part thereof from the date of the
issue of the invoice for such goods.

41.

Transfer of credit on sale, merger, amalgamation, lease or
transfer of a business

(1)

A
registered person shall, in the event of sale, merger, de-merger,
amalgamation, lease or transfer or change in the ownership of business for
any reason, furnish the details of sale, merger, de-merger, amalgamation,
lease or transfer of business, in FORM
GST ITC-02
, electronically on the common portal along with a request for
transfer of unutilized input tax credit lying in his electronic credit ledger
to the transferee:

Provided
that in the case of demerger, the input tax credit shall be apportioned in the
ratio of the value of assets of the new units as specified in the demerger
scheme.

(2)

The
transferor shall also submit a copy of a certificate issued by a practicing
chartered accountant or cost accountant certifying that the sale, merger,
de-merger, amalgamation, lease or transfer of business has been done with a
specific provision for the transfer of liabilities.

 

(3)

The
transferee shall, on the common portal, accept the details so furnished by
the transferor and, upon such acceptance, the un-utilized credit specified in
FORM GST ITC-02 shall be credited
to his electronic credit ledger.

 

(4)

The
inputs and capital goods so transferred shall be duly accounted for by the
transferee in his books of account.

 

42.

Manner of determination of ITC in respect of inputs or input
services and reversal thereof

 

(1)

The
input tax credit in respect of inputs or input services, which attract the
provisions of sub-section (1) or sub-section (2) of section 17, being partly
used for the purposes of business and partly for other purposes, or partly
used for effecting taxable supplies including zero rated supplies and partly
for effecting exempt supplies, shall be attributed to the purposes of
business or for effecting taxable supplies in the following manner, namely,-

(a)   
the
total input tax involved on inputs and input services in a tax period, be
denoted as ‘T’;

(b)   
the
amount of input tax, out of ‘T’, attributable to inputs and input services
intended to be used exclusively for the purposes other than business, be
denoted as ‘T1’;

(c)   
the
amount of input tax, out of ‘T’, attributable to inputs and input services
intended to be used exclusively for effecting exempt supplies, be denoted as
‘T2’;

(d)   
the
amount of input tax, out of ‘T’, in respect of inputs and input services on
which credit is not available under sub-section (5) of section 17, be denoted
as ‘T3’;

(e)   
the
amount of input tax credit credited to the electronic credit ledger of
registered person, be denoted as ‘C1’ and calculated as-

C1 = T- (T1+T2+T3);

(f) the amount of input tax credit attributable to inputs and
input services intended to be used exclusively for effecting supplies other
than exempted but including zero rated supplies, be denoted as ‘T4’;

(g) ‘T1’, ‘T2’, ‘T3’ and ‘T4’ shall be determined and declared
by the registered person at the invoice level in FORM GSTR-2;

(h) input tax credit left after attribution of input tax
credit under clause (g) shall be called common credit, be denoted as ‘C2’ and
calculated as-

C2 = C1- T4;

(i) the amount of input tax credit attributable towards exempt
supplies, be denoted as ‘D1’ and calculated as-

D1= (E÷F) × C2

where,

‘E’ is the aggregate value of exempt supplies during the tax
period, and

‘F’ is the total turnover in the State of the registered
person during the tax period:

Provided
that where the registered person does not have any turnover during the said
tax period or the aforesaid information is not available, the value of ‘E/F’
shall be calculated by taking values of ‘E’ and ‘F’ of the last tax period
for which the details of such turnover are available, previous to the month
during which the said value of ‘E/F’ is to be calculated;

Explanation:
For the purposes of this clause, it is hereby clarified that the aggregate
value of exempt supplies and the total turnover shall exclude the amount of
any duty or tax levied under entry 84 of List I of the Seventh Schedule to
the Constitution and entry 51 and 54 of List II of the said Schedule;

(j) the amount of credit attributable to non-business purposes
if common inputs and input services are used partly for business and partly
for non-business purposes, be denoted as ‘D2’, and shall be equal to five per
cent. of C2; and

(k) the remainder of the common credit shall be the eligible
input tax credit attributed to the purposes of business and for effecting
supplies other than exempted supplies but including zero rated supplies and
shall be denoted as ‘C3’, where,-

C3 = C2 – (D1+D2);

(l) the amount ‘C3’ shall be computed separately for input tax
credit of central tax, State tax, Union territory tax and integrated tax;

(m) the amount equal to aggregate of ‘D1’ and ‘D2’ shall be
added to the output tax liability of the registered person:

Provided
that where the amount of input tax relating to inputs or input services used
partly for the purposes other than business and partly for effecting exempt
supplies has been identified and segregated at the invoice level by the
registered person, the same shall be included in ‘T1’ and ‘T2’ respectively,
and the remaining amount of credit on such inputs or input services shall be
included in ‘T4’.

 

(2)

The
input tax credit determined under sub-rule (1) shall be calculated finally
for the financial year before the due date for furnishing of the return for
the month of September following the end of the financial year to which such
credit relates, in the manner specified in the said sub-rule and-

a)   
where
the aggregate of the amounts calculated finally in respect of ‘D1’ and ‘D2’
exceeds the aggregate of the amounts determined under sub-rule (1) in respect
of ‘D1’ and ‘D2’, such excess shall be added to the output tax liability of
the registered person in the month not later than the month of September
following the end of the financial year to which such credit relates and the
said person shall be liable to pay interest on the said excess amount at the
rate specified in sub-section (1) of section 50 for the period starting from
the first day of April of the succeeding financial year till the date of
payment; or

b)   
where
the aggregate of the amounts determined under sub-rule (1) in respect of ‘D1’
and ‘D2’ exceeds the aggregate of the amounts calculated finally in respect
of ‘D1’ and ‘D2’, such excess amount shall be claimed as credit by the
registered person in his return for a month not later than the month of September
following the end of the financial year to which such credit relates.

 

43.

Manner of determination of input tax credit in respect of
capital goods and reversal thereof in certain cases

 

(1)

Subject
to the provisions of sub-section (3) of section 16, the input tax credit in
respect of capital goods, which attract the provisions of sub-sections (1)
and (2) of section 17, being partly used for the purposes of business and
partly for other purposes, or partly used for effecting taxable supplies including
zero rated supplies and partly for effecting exempt supplies, shall be
attributed to the purposes of business or for effecting taxable supplies in
the following manner, namely,-

(a) the amount of input tax in respect of capital goods used
or intended to be used exclusively for non-business purposes or used or
intended to be used exclusively for effecting exempt supplies shall be
indicated in FORM GSTR-2 and shall
not be credited to his electronic credit ledger;

(b) the amount of input tax in respect of capital goods used
or intended to be used exclusively for effecting supplies other than exempted
supplies but including zero-rated supplies shall be indicated in FORM GSTR-2 and shall be credited to
the electronic credit ledger;

(c) the amount of input tax in respect of capital goods not
covered under clauses (a) and (b), denoted as ‘A’, shall be credited to the
electronic credit ledger and the useful life of such goods shall be taken as
five years from the date of the invoice for such goods:

Provided
that where any capital goods earlier covered under clause (a) is subsequently
covered under this clause, the value of ‘A’ shall be arrived at by reducing
the input tax at the rate of five percentage points for every quarter or part
thereof and the amount ‘A’ shall be credited to the electronic credit ledger;

Explanation.-
An item of capital goods declared under clause (a) on its receipt shall not
attract the provisions of sub-section (4) of section 18, if it is
subsequently covered under this clause.

(d) the aggregate of the amounts of ‘A’ credited to the
electronic credit ledger under clause (c), to be denoted as ‘Tc’, shall be
the common credit in respect of capital goods for a tax period:

Provided
that where any capital goods earlier covered under clause (b) is subsequently
covered under clause (c), the value of ‘A’ arrived at by reducing the input
tax at the rate of five percentage points for every quarter or part thereof
shall be added to the aggregate value ‘Tc’;

(e) the amount of input tax credit attributable to a tax
period on common capital goods during their useful life, be denoted as ‘Tm’
and calculated as-

Tm= Tc÷60

(f) the amount of input tax credit, at the beginning of a tax
period, on all common capital goods whose useful life remains during the tax
period, be denoted as ‘Tr’ and shall be the aggregate of ‘Tm’ for all such
capital goods;

(g) the amount of common credit attributable towards exempted
supplies, be denoted as ‘Te’, and calculated as-

Te= (E÷ F) x Tr

where,

‘E’
is the aggregate value of exempt supplies, made, during the tax period, and

‘F’
is the total turnover of the registered person during the tax period:

Provided
that where the registered person does not have any turnover during

the
said tax period or the aforesaid information is not available, the value of
‘E/F’ shall be calculated by taking values of ‘E’ and ‘F’ of the last tax
period for which the details of such turnover are available, previous to the month
during which the said value of ‘E/F’ is to be calculated;

Explanation.-
For the purposes of this clause, it is hereby clarified that the aggregate
value of exempt supplies and the total turnover shall exclude the amount of
any duty or tax levied under entry 84 of List I of the Seventh Schedule to
the Constitution and entry 51 and 54 of List II of the said Schedule;

(h) the amount Te along with the applicable interest shall,
during every tax period of the useful life of the concerned capital goods, be
added to the output tax liability of the person making such claim of credit.

 

(2)

The
amount Te shall be computed separately for central tax, State tax, Union
territory tax and integrated tax.

Explanation:-For
the purposes of rule 42 and this rule, it is hereby clarified that the
aggregate value of exempt supplies shall exclude:-

(a) the value of supply of services specified in the
notification of the Government of India in the Ministry of Finance,
Department of Revenue No. 42/2017-Integrated Tax (Rate), dated the 27th
October, 2017 published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i), vide number GSR 1338(E) dated the 27th October,
2017;

(b) the value of services by way of accepting deposits,
extending loans or advances in so far as the consideration is represented by
way of interest or discount, except in case of a banking company or a
financial institution including a non-banking financial company, engaged in supplying
services by way of accepting deposits, extending loans or advances; and

(c) the value of supply of services by way of transportation
of goods by a vessel from the customs station of clearance in India to a
place outside India.
[Notification No. 3/2018]

 

44.

Manner of reversal of credit under special circumstances

 

(1)

The
amount of input tax credit relating to inputs held in stock, inputs contained
in semi-finished and finished goods held in stock, and capital goods held in
stock shall, for the purposes of sub-section (4) of section 18 or sub-section
(5) of section 29, be determined in the following manner, namely,-

a)   
for
inputs held in stock and inputs contained in semi-finished and finished goods
held in stock, the input tax credit shall be calculated proportionately on
the basis of the corresponding invoices on which credit had been availed by
the registered taxable person on such inputs;

b)   
for
capital goods held in stock, the input tax credit involved in the remaining
useful life in months shall be computed on pro-rata basis, taking the useful
life as five years.

 

(2)

The
amount, as specified in sub-rule (1) shall be determined separately for input
tax credit of central tax, State tax, Union territory tax and integrated tax.

 

(3)

Where
the tax invoices related to the inputs held in stock are not available, the
registered person shall estimate the amount under sub-rule (1) based on the
prevailing market price of the goods on the effective date of the occurrence
of any of the events specified in section 18(4) or, as the case may be,
section 29(5).

 

(4)

The
amount determined under sub-rule (1) shall form part of the output tax
liability of the registered person and the details of the amount shall be
furnished in FORM GST ITC-03,
where such amount relates to any event specified in sub-section (4) of section
18 and in FORM GSTR-10, where such
amount relates to the cancellation of registration.

 

(5)

The
details furnished in accordance with sub-rule (3) shall be duly certified by
a practicing chartered accountant or cost accountant.

 

(6)

The
amount of input tax credit for the purposes of sub-section (6) of section 18
relating to capital goods shall be determined in the same manner as specified
in clause (b) of sub-rule (1) and the amount shall be determined separately
for input tax credit of central tax, State tax, Union territory tax and
integrated tax:

Provided
that where the amount so determined is more than the tax determined on the
transaction value of the capital goods, the amount determined shall form part
of the output tax liability and the same shall be furnished in FORM GSTR-1.

 

44A

Manner of reversal of credit of Additional duty of Customs in
respect of Gold dore bar
[Notification No. 22/2017]

 

 

The
credit of Central tax in the electronic credit ledger taken in terms of
section 140 relating to the CENVAT Credit c/f which had accrued on account of
payment of the additional duty of customs levied u/s 3(1) of the Customs
Tariff Act, 1975, paid at the time of importation of gold dore bar, on the
stock of gold dore bar held on the 1/7/17 or contained in gold or gold
jewellery held in stock on the 1/7/17 made out of such imported gold dore
bar, shall be restricted to one-sixth of such credit and five-sixth of such
credit shall be debited from the electronic credit ledger at the time of
supply of such gold dore bar or the gold or the gold jewellery made therefrom
and where such supply has already been made, such debit shall be within one
week from the date of commencement of these Rules.

 

45.

Conditions and restrictions in respect of inputs and capital
goods sent to the job worker

 

(1)

The
inputs, semi-finished goods or capital goods 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, 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 or sent from one job worker to another during a
quarter shall be included in FORM GST
ITC-04
furnished for that period on or before the twenty-fifth day of the
month succeeding the said quarter 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
[Notification No. 51/2017]. The time limit for making the declaration in FORM GST
ITC-04, for the period July, 2017 to June, 2018 is extended till 30-Sep-2018.
[Notification No. 40/2018]

 

(4)

Where
the inputs or capital goods are not returned to the principal within the time
stipulated in section 143, it shall be deemed that such inputs or capital
goods had been supplied by the principal to the job worker on the day when
the said inputs or capital goods 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” 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 1 % of the sale
value of such security