Dear All,
Please guide me, as per GST Law is the Principal and Job worker are considered as related person or distinct person?
and if principal pay off the creditor of Job work on behalf, will job worker be able to claim ITC on such purchase as the payment is directly done by principal.
Section 19 of the CGST Act, 2017 provides that the principal (a person supplying taxable goods to the job worker) shall be entitled to take the credit of input tax paid on inputs sent to the job- worker for the job work.
Principle and Job workers are Distinct Persons. If the Tax Invoice is in the name of Job Worker, he can take input credit.
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