Procedure to be followed in respect of inputs and capital goods sent to the job worker :
The inputs or capital goods shall be sent to the job worker under the cover of a challan issued by the principal, including where the inputs or capital goods are sent directly to job-worker – rule 10(1) of Input Tax Credit Rules.
The challan issued by the principal to the job worker shall contain the details specified in Invoice Rules – rule 10(2) of Input Tax Credit Rules.
The details of challans in respect of goods dispatched to a job worker or received from a job worker during a tax period shall be included in form GSTR-1 furnished for that period – rule 10(3) of Input Tax Credit Rules.
If the inputs or capital goods are not returned to the principal within the time stipulated in section 143, the challan issued under rule 10(1) shall be deemed to be an invoice for the purposes of this Act – rule 10(4) of Input Tax Credit Rules.
Explanation.—For the purposes of this Chapter,—
(1) “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 one per cent. of the sale value of such security.