Question 5 - Can a principal send inputs and capital goods directly to the premises of job worker without bringing it to his premises? - Faq On GST (2nd Edition) Dated 31.3.2017

Q 5. Can a principal send inputs and capital goods directly to the premises of job worker without bringing it to his premises? Ans. Yes, the principal is allowed to do so. The input tax credit of tax paid on inputs or capital goods can also be availed by the principal in such a scenario. The inputs or capital goods must be received back within one year or three years respectively failing which the original transaction would be treated as supply and the principal would be liable to pay tax accordingly.