If inputs or capital goods are not returned within one/three years

If inputs or capital goods are not returned within one/three years :

If inputs or capital goods are not received back by ‘principal’ within one/three years. GST shall be payable as if the inputs/capital goods were supplied by the principal to job worker on the day when the inputs/capital goods were sent out – section 143(3) and 143(4) of CGST Act.

If inputs or capital goods are directly sent to place of job worker, the period of one/three years will be counted from date of receipt of inputs/capital goods by the job worker – proviso to section 19(3) and proviso to 19(6) of CGST Act.

The meaning of ‘on the day when the inputs/capital goods were sent out’ can mean that (a) GST rate as applicable on the day when they are sent out will be relevant (b) Interest for one/three years will be payable.