Taking input tax credit in respect of inputs and capital goods sent

for job work.—

1. (1) The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on inputs sent to a job worker for jobwork.
2. (2) Notwithstanding anything contained in clause (b) of sub- section (2) of section 16, the principal shall be entitled to take credit of input tax on inputs even if the inputs are directly sent to a job worker for job work without being first brought to his place of business.
3. (8) Where the inputs sent for job work are not received back by the principal after completion of job work or otherwise or are not supplied from the place of business of the job worker in accordance with clause (a) or clause (b) of sub- section (1) of section 143 within one year of being sent out, it shall be deemed that such inputs had been supplied by the principal to the job worker on the day when the said inputs were sent out: Provided that where the inputs are sent directly to a job worker, the period of one year shall be counted from the date of receipt of inputs by the job worker.
4. (4) The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on capital goods sent to a job worker for jobwork.
   • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 39
5. (5) Notwithstanding anything contained in clause (b) of sub- section (2) of section 16, the principal shall be entitled to take credit of input tax on capital goods even if the capital goods are directly sent to a job worker for job work without being first brought to his place of business.
6. (6) Where the capital goods sent for job work are not received back by the principal within a period of three years of being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job worker on the day when the said capital goods were sent out: Provided that where the capital goods are sent directly to a job worker, the period of three years shall be counted from the date of receipt of capital goods by the job worker.
7. (7) Nothing contained in sub-section (3) or sub-section (6) shall apply to moulds and dies, jigs and fixtures, or tools sent out to a job worker for job work. Explanation.- For the purpose of this section, "principal" means the person referred to in section 143. [20. Manner of distribution of credit by Input Service Distributor.
8. (1) Any office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub- section (3) or sub-section (4) of section 9 [of this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act, 2017]75, for or on behalf of distinct persons referred to in section 25, shall be required to be registered as Input Service Distributor under clause (viii) of section 24 and shall distribute the input tax credit in respect of such invoices.
9. (2) The Input Service Distributor shall distribute the credit of State tax or integrated tax charged on invoices received by him, including the credit of State or integrated tax in respect of services subject to levy of tax under sub- section (3) or sub-section (4) of section 9 [of this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act, 2017]76 paid by a distinct person registered in the same State as the said Input Service Distributor, in such manner, within such time and subject to such restrictions and conditions as may be prescribed.
10. (3) The credit of State tax shall be distributed as State tax or integrated tax and integrated tax as integrated tax or State tax, by way of issue of a document containing the amount of input tax credit, in such manner as may be prescribed.".]?7 (Amendment) Act, 2025 (Bihar Act no. 07 of 2025) vide Notification No. 1338 Dated 12t August, 2025 w.e.f. 01.04.2025. (Amendment) Act, 2025 (Bihar Act no. 07 of 2025) vide Notification No. 1338 Dated 12t August, 2025 w.e.f. 01.04.2025. 77 Substituted by The Bihar Goods and Services Tax (Amendment) Act, 2024 (Bihar Act no. 15 of 2024) vide Notification No. 736 Dated 6th August, as under :-
    • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 40

⁷⁵ Inserted for the words "plant or machinery” by The Bihar Goods and Services Tax

⁷⁶ Inserted for the words "plant or machinery’ by The Bihar Goods and Services Tax

²⁰²⁴ Prior to substitution Section reads