Principal Can Claim ITC on Capital Goods Sent Directly for Job Work: Kerala HC directs GST Dept to Allow Benefit u/s 16(5) of GST Act [Read Order]
Since the petitioner claims that they are entitled for the benefit of Section 16(5) of the Act, the first respondent shall consider the same in accordance with law
![Principal Can Claim ITC on Capital Goods Sent Directly for Job Work: Kerala HC directs GST Dept to Allow Benefit u/s 16(5) of GST Act [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/ITC-Claim.jpg "Principal Can Claim ITC on Capital Goods Sent Directly for Job Work: Kerala HC directs GST Dept to Allow Benefit u/s 16(5) of GST Act [Read Order]")
The Kerala High Court directed the Goods and Service Tax (GST) department to allow claims of benefit under section 16(5) of GST Act, 2017. By virtue of an amendment effected, sub-clause (5) to Section 16 of the Act, the principal can take Input Tax Credit (ITC) on capital goods if capital goods are directly sent to a job worker for job work. Kuttukaran Antony Anto, the petitioner is a...
The Kerala High Court directed the Goods and Service Tax (GST) department to allow claims of benefit under section 16(5) of GST Act, 2017. By virtue of an amendment effected, sub-clause (5) to Section 16 of the Act, the principal can take Input Tax Credit (ITC) on capital goods if capital goods are directly sent to a job worker for job work.
Kuttukaran Antony Anto, the petitioner is a tax payer under the CGST/ SGST Acts, 2017 ('the Act'). For the assessment year 2018-19, petitioner was issued with an assessment order under Section 73 as per Show cause notice. Petitioner had filed its return for various months of 2019 belatedly. Subsequently, by virtue of an amendment effected, sub-clause (5) to Section 16 of the Act was incorporated. Petitioner contends that the returns filed by him can be treated as within time in view of the amendment and therefore the petitioner ought to be given the benefit.
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On 10.02.2025, this Court had issued a direction giving liberty to the petitioner to file appropriate application claiming the benefit of Section 16(5) of the Act. Since, it is now submitted that the returns were filed within the time and hence petitioner is entitled for the benefit by application of Section 16(5) of the Act, the court viewed that the writ petition can be disposed of directing the assessing authority to consider granting the benefit of Section 16(5) of the Act to the petitioner, if he is entitled to, in accordance with law.
A single bench of Justice Bechu Kurian Thomas disposed of the writ petition is disposed by directing the first respondent to consider and pass appropriate orders, in accordance with law, regarding the claim of the petitioner for the benefit available under Section 16(5) of the Act. Since the petitioner claims that they are entitled for the benefit of Section 16(5) of the Act, the first respondent shall consider the same in accordance with law and if the said provision is applicable, he shall pass appropriate orders giving such benefits.
Further directed that the order shall passed as expeditiously as possible, at any rate, within a period of 30 days from today. The revenue recovery proceedings initiated against the petitioner shall be kept in abeyance till orders are passed by the first respondent as directed above. If the petitioner is given the benefit of amended provisions of Section 16(5) of the Act, necessarily consequences will follow.
To Read the full text of the Order CLICK HERE
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