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An electronics manufacturer participating in one or more of the six electronics-adjacent PLI schemes (LSEM, IT Hardware revised, White Goods, Solar, ACC Battery, Semiconductor ISM) must identify the correct base year for each scheme, reconcile the base-year revenue on a segment- and HSN-level basis against the audited FY 2019-20 (or scheme-specific) financials, and produce a current-year incremental sales bridge that matches the MeitY, DPIIT, MNRE, or DHI portal claim workbook line-by-line. Base-year drift between schemes is the most common reason a multi-scheme applicant sees a portal claim rejection at the statutory auditor certification cycle. For LSEM specifically, the FY 2019-20 base must be certified by the MeitY-empanelled statutory auditor in Form 3CD-like format, split by HSN 8517.12 mobile handsets and further split by the Rs 15,000 unit invoice value segment boundary, and reconciled to the audited financial statements filed under Section 129 of the Companies Act.
For each PLI scheme the applicant participates in, identify the base-year mechanic from the applicable notification (LSEM = FY 2019-20 fiscal; IT Hardware revised = FY 2022-23 fiscal; White Goods = tranche-specific; Solar = LoA milestone; ACC Battery = commissioning-year; Semiconductor ISM = capex-milestone). For LSEM, extract the FY 2019-20 invoice ledger from SAP FI or Oracle Fusion, filter to HSN 8517.12 (and other approved HSN codes per the approval letter), split by unit invoice value against the Rs 15,000 threshold to identify premium versus domestic segment revenue, exclude sample and warranty-replacement invoices, exclude non-Section 143 direct-sale invoices where the applicant is a contract manufacturer, and lock the resulting base as the immutable reference. For every claim year, extract the current-year invoice ledger on identical filter criteria, subtract the base to produce segment-level incremental sales, apply the segment-appropriate slab (premium 6-percent tapering to 4-percent, domestic 4-percent flat, components 4-percent flat), and cap at the MeitY-approved participant-specific ceiling per approval letter. Generate the MeitY PLI portal claim workbook and the Form 3CD-like statutory auditor certificate on a segment-split basis with the base-year reconciliation exposed on every line. Repeat the base-year reconciliation exercise separately for each other PLI scheme the applicant participates in using that scheme's own base-year mechanic.
Scheme master with base-year mechanic per scheme (LSEM = FY 2019-20 fiscal; IT Hardware = FY 2022-23 fiscal; White Goods = tranche-specific; Solar = LoA milestone; ACC Battery = commissioning-year; ISM = capex-milestone); HSN-to-segment mapping (8517.12 mobile handsets split above and below Rs 15,000 unit invoice value; 8517.13 chargers as components; 8528 monitors under IT Hardware; 8415 air conditioners under White Goods; 8541 photovoltaic cells under Solar; 8507 lithium-ion batteries under ACC); MeitY / DPIIT / MNRE / DHI approval-letter reference with participant-specific per-year ceiling; Section 143 CGST job-work flag on outward invoice register (Rule 45 challan reference, ITC-04 quarterly filing reference); sample and warranty-replacement GL account filter; statutory auditor Form 3CD-like certificate template per scheme; MeitY PLI portal filing calendar (typically annual claim with in-year quarterly reporting).
A per-scheme base-year lock report identifying the fiscal-year or milestone reference for each scheme the applicant participates in, with the underlying invoice ledger extract and the statutory auditor certification reference. For LSEM specifically, a segment-split base register showing FY 2019-20 revenue for HSN 8517.12 above Rs 15,000 per unit (premium segment base), FY 2019-20 revenue for HSN 8517.12 Rs 10,000-Rs 15,000 per unit (domestic segment base), and FY 2019-20 revenue for other approved HSN codes (component segment base). For every claim year, a segment-split incremental sales bridge showing current-year revenue less base by segment, the segment-appropriate slab applied, the raw incentive computation, the participant-specific ceiling comparison, and the eligible incentive claim. The MeitY PLI portal claim workbook and the Form 3CD-like statutory auditor certificate schedule roll up from the same underlying ledger, matching to the rupee against the applicant's Section 129 audited financial statements. Cross-scheme rollup identifies the applicant's aggregate PLI receivable across all schemes it participates in for treasury and Ind AS 20 grant recognition purposes.
An Indian contract manufacturer at the scale of Foxconn Bharat FIH — the largest India-side handset assembler and one of the eight MeitY-approved participants in the PLI Large-Scale Electronics Manufacturing scheme — closes its FY 2026-27 quarterly claim on the MeitY PLI portal with an FY 2019-20 statutory-auditor-certified base of approximately Rs 8,600 crore (illustrative) for HSN 8517.12 premium mobile handset manufacturing revenue, a current-year invoice ledger extract of approximately Rs 34,500 crore (illustrative) for the same segment, and a Year 5 incentive rate of 4 percent capped at the MeitY-approved participant-specific per-year ceiling in its approval letter. This is PLI electronics base year FY 2019-20 incremental sales reconciliation at operating scale for a Category-anchor Wave 1 mobile handset applicant, and the discipline that keeps the MeitY portal claim workbook, the Form 3CD-like statutory auditor certificate, the Section 143 CGST job-work register, and the participant-specific ceiling comparison simultaneously clean is what separates an applicant whose annual disbursement runs on schedule from one that spends the following year responding to a MeitY query letter on a mis-mapped segment split or a mis-classified HSN.
The reconciliation in one paragraph
A PLI LSEM applicant runs a four-surface reconciliation cascade across every claim year. Surface one is the FY 2019-20 base-year invoice register — the HSN 8517.12 mobile handset revenue for the twelve months from 01-April-2019 to 31-March-2020, split by unit invoice value against the Rs 15,000 threshold to isolate premium segment base from domestic segment base, extracted from SAP FI or Oracle Fusion and filtered to exclude sample distribution, warranty-replacement units, and non-Section 143 direct-sale invoices. Surface two is the current-year invoice register — the same extract on an identical basis for the claim year, producing segment-level current-year revenue. Surface three is the incremental sales bridge and slab application — current-year segment revenue minus base segment revenue delivers segment-level incremental sales, and the segment-appropriate slab (premium 6 percent tapering to 4 percent across Years 1 to 5, domestic 4 percent flat, electronic components 4 percent flat) applied to that delivers raw incentive per segment. Surface four is the ceiling binding and portal filing — MeitY-approved participant-specific per-year ceiling from the applicant’s approval letter caps the aggregate incentive across segments, and the resulting eligible claim is filed on the MeitY PLI portal with a Form 3CD-like statutory auditor certificate. Each surface carries its own audit exposure and each must reconcile to the same underlying Section 129 audited financial statement to survive a MeitY query cycle. The methodology for structuring this cascade is set out in Terra Insight’s reconciliation failure-mode analysis for India pillar.
What the scenario looks like in India — the illustrative persona
The PLI LSEM approved-participant universe is a small set of large-scale contract manufacturers and one owned brand. The mobile handset contract-manufacturing anchors are Foxconn Bharat FIH (formerly Bharat FIH India, the Foxconn subsidiary that runs the Sriperumbudur Tamil Nadu campus and one of the two large iPhone assembly locations in India), Wistron (subsequently acquired by Tata Electronics for its Karnataka handset campus), and Pegatron. The Samsung-owned assembly is Samsung India Electronics at its Noida Uttar Pradesh plant. The Dixon Technologies participation is via Padget Electronics, the Dixon subsidiary that carries the Samsung India Electronics and Xiaomi India contract-manufacturing agreements. Additional participants include Lava International, Micromax (In Mobile India), and UTL Neolyncs. The electronic components segment carries a separate participant list including Amber Enterprises, Syrma SGS Technology, and Elin Electronics.
For the illustrative worked example in this article, we take the Foxconn Bharat FIH persona at the scale of a Year-5 premium-segment claim run — a Wave-1 large-scale participant that operates entirely under Section 143 CGST job-work for the Apple brand-owner principal, extracts its outward invoice register from a global-tenant SAP FI installation, and files its annual MeitY portal claim through a MeitY-empanelled statutory auditor. The persona is illustrative; real PLI LSEM approved-participant claim files, MeitY-approved base values, and per-year ceilings are not publicly disclosed at line-item level and are not the subject of speculative recomputation here. The purpose of the persona is the reconciliation surface, not any specific real applicant’s position.
The regional electronics manufacturing geography maps to a small set of clusters: Sriperumbudur (Tamil Nadu — mobile handset assembly), Noida-Greater Noida (Uttar Pradesh — Samsung India, Vivo, Oppo campuses), Kolar-Bengaluru (Karnataka — Foxconn’s Devanahalli site under construction, Tata Electronics Wistron acquisition), Sanand (Gujarat — semiconductor ATMP and fab campus), Tirupati (Andhra Pradesh — electronic components), and Sriperumbudur-Oragadam (Tamil Nadu automotive electronics adjacency). A multi-plant LSEM participant with more than one state GSTIN must consolidate the outward invoice register across all state GSTINs, apply the HSN and segment filters consistently, and reconcile the MeitY portal claim against the aggregated Section 129 financial statement — not against any single state-GSTIN filing.
The regulatory overlay — six schemes, six base-year mechanics
The six electronics-adjacent PLI schemes carry structurally different base-year mechanics that a multi-scheme applicant must reconcile separately.
PLI LSEM (MeitY, Rs 40,995 crore, notified 01-April-2020) anchors to FY 2019-20 as the fiscal-year base. Incremental sales is computed as current-year eligible revenue minus FY 2019-20 same-segment revenue. Segment slabs for mobile handsets are premium (above Rs 15,000 per unit) at 6 percent Year 1 tapering to 4 percent Year 5, domestic (Rs 10,000 to Rs 15,000 per unit) at 4 percent flat five years, and electronic components at 4 percent flat five years. The five-year incentive window is FY 2020-21 to FY 2024-25 (with claim filings extending into subsequent years as the annual audit cycle completes).
PLI IT Hardware revised (MeitY, Rs 17,000 crore, notified May 2023) re-anchors to FY 2022-23 as the fiscal-year base — a critical distinction from the legacy IT Hardware scheme it replaced. Segments cover laptop, tablet, all-in-one PC, server, and USFF (ultra-small form-factor) PC. Approved participants include Dell India, HP India, HCL Technologies JV, and Foxconn for server contract manufacturing to HPE and Dell.
PLI White Goods (DPIIT, Rs 6,238 crore, Cabinet 07-April-2021, DPIIT notification 16-April-2021) covers air conditioner components and LED lighting components across a seven-year window from FY 2021-22 to FY 2028-29 in two application tranches. Base-year alignment is tranche-specific and product-segment-specific; each approved participant must confirm the base-year applicable to its own DPIIT approval letter. Approved participants include Amber Enterprises (AC component leader), Havells, Dixon (LED lighting), and PG Electroplast (washing machine adjacency).
PLI Solar PV Modules (MNRE, Rs 24,000 crore across Tranche-I Rs 4,500 crore implemented by IREDA and Tranche-II Rs 19,500 crore implemented by SECI) has no single fiscal base year. Incentive is computed against Letter-of-Award milestones — capacity commissioning (GW of module manufacturing capacity), module efficiency threshold, and DVA milestone. Approved participants include Waaree Energies, Adani Solar Mundra, Reliance New Energy Solar, Tata Power Solar, and Vikram Solar. Note that the scheme is administered by MNRE, not by MeitY — a common misclassification.
PLI ACC Battery Storage (DHI, Rs 18,000 crore) is commissioning-year-based. Each approved participant’s five-year incentive window starts from the year in which its committed GWh of manufacturing capacity is commissioned and DVA milestones certified. The scheme is technology-agnostic across LFP, NMC, and other advanced chemistry. Approved participants include Reliance New Energy at Jamnagar, Ola Electric Cell Technology at Krishnagiri, and Rajesh Exports JV.
India Semiconductor Mission / ISM (MeitY, Rs 76,000 crore) is capex-milestone-based across four sub-schemes: fab, display fab, compound semiconductors and sensors, and ATMP-OSAT. Approved projects include Tata Electronics fab at Sanand (JV with Powerchip PSMC), Micron India ATMP at Sanand, Kaynes Semicon OSAT, and CG Power JV with Renesas at Sanand.
A multi-scheme participant — for example, an integrated electronics group participating in LSEM (mobile handsets), White Goods (air conditioner components), and Semiconductor ISM (ATMP) — must run three distinct base-year reconciliation surfaces, apply three distinct slab-and-milestone schedules, and file three distinct portal claim workbooks (MeitY LSEM portal, DPIIT White Goods portal, MeitY ISM portal). The Domestic Value Addition mechanic that cross-cuts all three schemes is unpacked separately in the DVA computation across PLI electronics schemes sibling article; the scheme-selection logic for a multi-eligible applicant is walked through in the PLI scheme selector for an electronics manufacturer sibling.
A worked example — Foxconn Bharat FIH persona, Year 5 premium-segment claim
Illustrative — the following figures represent the operating pattern of a large-scale PLI LSEM participant of the scale of Foxconn Bharat FIH at Year 5 of the scheme window. Public disclosures do not reveal per-participant MeitY-approved base values, per-year segment splits, or per-year ceilings; the numbers below are illustrative of the reconciliation surface, not a claim about any specific real applicant’s PLI position.
The applicant entered the PLI LSEM scheme with an FY 2019-20 MeitY-approved base of approximately Rs 8,600 crore for HSN 8517.12 premium mobile handset manufacturing (invoice value above Rs 15,000 per unit), certified by a MeitY-empanelled statutory auditor in Form 3CD-like format, reconciled to the applicant’s Section 129 audited financial statements for FY 2019-20, and filed with the MeitY PLI portal. The base excludes sample distribution, warranty-replacement units, and non-Section 143 outward invoices (for the applicant, all outward invoices are under Section 143 job-work to the Apple brand-owner principal, so this filter is trivially satisfied).
At Year 5 close (FY 2024-25), the applicant’s current-year invoice register for HSN 8517.12 premium segment extracts to approximately Rs 34,500 crore. Segment-level incremental sales is Rs 34,500 crore minus Rs 8,600 crore = Rs 25,900 crore. The Year 5 slab for premium segment is 4 percent (the tapered rate after starting at 6 percent in Year 1). Raw incentive at 4 percent of Rs 25,900 crore = Rs 1,036 crore.
| Year 5 (FY 2024-25) claim line — premium segment | Value (Rs crore) |
|---|---|
| FY 2019-20 base — HSN 8517.12 above Rs 15,000 per unit | 8,600 |
| Current-year invoice register — HSN 8517.12 above Rs 15,000 per unit | 34,500 |
| Incremental sales — premium segment | 25,900 |
| Year 5 slab — premium segment | 4 percent |
| Raw incentive — premium segment | 1,036 |
| MeitY-approved participant ceiling — Year 5 premium | Applicant-specific (illustratively Rs 500 to 1,000 crore range per participant per year) |
| Eligible claim after ceiling binding | Capped at approval letter ceiling |
The MeitY-approved participant-specific per-year ceiling in each applicant’s approval letter is not a scheme-wide public number — it varies by participant, by segment, and by year. For large-scale premium mobile handset participants, the ceiling typically falls within a Rs 500 to Rs 1,000 crore per participant per year band. An applicant whose raw incentive computation of Rs 1,036 crore exceeds its own per-year ceiling of (say) Rs 700 crore claims Rs 700 crore for the year; the excess Rs 336 crore does not roll forward. The Form 3CD-like statutory auditor certificate on the MeitY portal must explicitly reconcile the raw incentive computation to the per-year ceiling and identify the excess foregone.
On the tax side, the PLI grant income of Rs 700 crore (illustrative post-ceiling claim) is recognised under Ind AS 20 as reasonable assurance is established through the MeitY portal approval, presented as other income per the applicant’s accounting policy choice. The applicant is under the normal tax regime (not Section 115BAA) if it retains its Section 35(2AB) R&D weighted deduction eligibility; Section 115JB MAT book-profit adjustment adds the Rs 700 crore grant to book profit. This is the identical mechanic that governs the pharma PLI grant treatment set out in the PLI Pharma Rs 15,000 crore eligibility and incremental sales cornerstone.
Common reconciliation breakages
Five breakages recur across LSEM base-year and current-year extracts, and each maps to a specific control failure that surfaces at the statutory auditor certification cycle.
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HSN scope drift between base year and current year. A new SKU launched in the current year is classified in the applicant’s ERP under HSN 8517.13 (chargers or accessories) rather than HSN 8517.12 (handset itself). The current-year extract picks it up under a broader HSN filter and inflates eligible sales; the base-year register does not carry that HSN because the SKU did not exist in FY 2019-20. The incremental sales computation includes revenue with no matching base and over-claims the incentive. Reconciliation discipline requires the HSN filter on the current-year extract to match the HSN filter on the base register exactly, and any new HSN inclusion to trigger a fresh MeitY approval workflow before it can be added to the claim.
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Segment-split drift across the Rs 15,000 unit invoice value boundary. A mobile handset SKU crosses the Rs 15,000 unit invoice value threshold during a price revision cycle — a domestic-segment SKU is repriced to Rs 15,200 per unit and now qualifies as premium segment. The base register carries the SKU under domestic (4 percent flat) but the current-year extract classifies it as premium (4 percent Year 5 rate, same as domestic Year 5 but different tapering profile in earlier years). Reconciliation discipline requires the segment split to be run on unit invoice value in both the base year and the current year on identical criteria, with any cross-boundary SKU flagged and the segment-history documented in the auditor certificate.
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Sample and warranty-replacement units inflating physical dispatch quantities. Physician-sample equivalents in electronics (evaluation units, review-sample units to certification bodies, retail-demo units) and warranty-replacement dispatches carry zero-value invoices or distinct GL accounts. Where the extract keys on physical unit dispatches rather than invoice value, sample and warranty units inflate current-year unit counts without adding to eligible sales. Reconciliation discipline is to key extracts on invoice value (not physical units) and filter out the sample and warranty GL accounts at extraction, documenting the exclusion in the auditor certificate. The reconciliation playbook monthly close methodology treats sample-inclusion as a specific month-end control test.
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Section 143 CGST job-work mixing with direct-sale invoices. A contract manufacturer that operates primarily under Section 143 job-work for a brand-owner principal but also has a small direct-sale line for a non-OEM buyer mixes both in the outward invoice register. The extract must isolate Section 143 outward invoices (identified by the Rule 45 challan reference on the invoice) from direct-sale invoices. Only Section 143 movement counts toward PLI LSEM eligible sales for a contract-manufacturing participant; direct sales fall outside the scheme envelope. This distinction is where the TDS payment code 1031 for Section 393(1) purchase of goods sibling article’s payment-code discipline intersects — the purchase-side TDS on the brand-owner principal’s inward components under Section 194Q is a separate control that runs alongside.
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MeitY-approved participant-specific ceiling mis-application. An applicant that computes the raw incentive against the segment slab without checking its own MeitY approval-letter ceiling either over-books the receivable (recognising more grant income than the ceiling allows) or under-claims (applying a conservative rounding that is not the actual ceiling). The MeitY-approved participant ceiling is a scheme-specific number in each approval letter — not a scheme-wide published rule. Reconciliation discipline requires the approval letter to be a stored artefact in the compliance data room, referenced explicitly on every year’s claim workbook, and matched against the raw incentive computation on a per-segment basis. The variance-taxonomy discipline for treating this class of drift is anchored in the human errors detection envelope methodology.
How a reconciliation platform handles this
A purpose-built electronics reconciliation platform ingests the applicant’s MeitY approval letter and per-scheme base-year mechanic, the applicant’s SAP FI or Oracle Fusion outward invoice register by HSN and segment, the Section 143 CGST job-work register with Rule 45 challan and ITC-04 quarterly filing references, and the sample-and-warranty GL account filter — and produces a per-year segment-split incremental sales bridge that closes the loop from ERP invoice line to MeitY PLI portal claim workbook. The platform applies the segment-appropriate slab, binds the MeitY-approved participant-specific ceiling explicitly per segment, generates the MeitY portal claim workbook and the Form 3CD-like statutory auditor certificate template, and drives the Ind AS 20 grant receivable recognition entry with the Section 115JB MAT book-profit adjustment into the entity’s tax provisioning workflow. Match rate improvement of 51 to 88 percent on the base-year and current-year segment-split extraction, combined with an ISO 27001:2022 posture and DPDP Act 2023 aligned data handling, is what makes electronics reconciliation software India an infrastructure investment for a multi-scheme LSEM, IT Hardware, or ISM participant running the annual MeitY claim cycle rather than a spreadsheet substitute. The commercial pillar for the broader authority is reconciliation software India.
Content authored by practitioners with experience at Amazon India, Intuit QuickBooks, and the Tata Group. Meet the team →
- ▸ PLI LSEM notification, Ministry of Electronics and Information Technology — Production Linked Incentive scheme for Large-Scale Electronics Manufacturing notified by MeitY on 01-April-2020 with a total outlay of Rs 40,995 crore. Base year is FY 2019-20 (01-April-2019 to 31-March-2020). Incentive window is FY 2020-21 (Year 1) to FY 2024-25 (Year 5). Segment slabs for mobile handsets are (i) invoice value above Rs 15,000 per unit (premium/high-end) at 6 percent Year 1 tapering to 4 percent Year 5, (ii) domestic segment (Rs 10,000-Rs 15,000 per unit) at 4 percent flat five years, and (iii) electronic components at 4 percent flat five years. Incremental sales is defined as value of mobile handsets manufactured in India during the year minus the value of mobile handsets manufactured in India during FY 2019-20 base year. Statutory auditor certification per MeitY-prescribed Form 3CD-like format is mandatory with every year's claim, uploaded on the MeitY PLI portal.
- ▸ PLI IT Hardware (revised) scheme notification, MeitY — The revised PLI IT Hardware scheme was notified by MeitY in May 2023 with a total outlay of Rs 17,000 crore. The revised base year is FY 2022-23 (not FY 2019-20 as in the earlier legacy IT Hardware scheme). Incentive window is six years. Eligible segments: laptop / tablet / all-in-one PC / server / ultra-small form-factor (USFF) PC. Approved participants under the revised scheme include Dell India, HP India, HCL Technologies (JV), Foxconn (server contract for HPE and Dell), and other electronics contract manufacturers. Domestic Value Addition (DVA) is a scheme-defining eligibility gate under this scheme.
- ▸ PLI White Goods (Air Conditioners and LED components) notification, DPIIT — The PLI scheme for White Goods (Air Conditioners and LED Lighting components) is administered by the Department for Promotion of Industry and Internal Trade (DPIIT) with a total outlay of Rs 6,238 crore. Cabinet approved on 07-April-2021; DPIIT scheme notification issued 16-April-2021. Incentive window is FY 2021-22 to FY 2028-29 (seven-year staggered window across two application tranches). Base-year alignment varies by application tranche and by product segment; the applicant must confirm the base year applicable to its own approval letter from DPIIT.
- ▸ PLI Solar PV Modules scheme, Ministry of New and Renewable Energy — The PLI scheme for High Efficiency Solar PV Modules is administered by the Ministry of New and Renewable Energy (MNRE), not by MeitY. Total outlay is Rs 24,000 crore across two tranches: Tranche-I of Rs 4,500 crore implemented by IREDA (Indian Renewable Energy Development Agency), and Tranche-II of Rs 19,500 crore implemented by SECI (Solar Energy Corporation of India). Under both tranches, incentive computation is anchored to individual Letter-of-Award (LoA) milestones (capacity commissioning, module efficiency, and Domestic Value Addition thresholds) rather than to a single fiscal-year base year. This is a structural distinction from PLI LSEM.
- ▸ PLI ACC Battery Storage scheme, Department of Heavy Industries — The Advanced Chemistry Cell (ACC) Battery Storage PLI scheme is administered by the Department of Heavy Industries (DHI) with a total outlay of Rs 18,000 crore. Incentive is anchored to the commissioning year of each GWh of manufacturing capacity — technology-agnostic (LFP, NMC, or other advanced chemistry). The scheme has no single fiscal base year; each approved participant's five-year incentive window starts from the year in which its committed manufacturing capacity is commissioned and Domestic Value Addition milestones are certified.
- ▸ India Semiconductor Mission (ISM) — Modified Programme, MeitY — The Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India (India Semiconductor Mission or ISM) is administered by MeitY with a total outlay of Rs 76,000 crore across four sub-schemes: (i) Fab, (ii) Display Fab, (iii) Compound Semiconductors and Sensors, and (iv) ATMP-OSAT (Assembly, Testing, Marking, Packaging / Outsourced Semiconductor Assembly and Test). Incentive under ISM is anchored to capex milestones and Domestic Value Addition thresholds under each approved project's Modified Programme approval letter, not to a single fiscal base year. Approved projects include the Tata Electronics fab at Sanand (JV with Powerchip Semiconductor Manufacturing Corporation), Micron India's ATMP at Sanand, Kaynes Semicon OSAT, and CG Power's JV with Renesas at Sanand.
- ▸ Section 143, Central Goods and Services Tax Act 2017 — Section 143 CGST governs the movement of inputs and capital goods for job-work from a principal (typically the brand-owner OEM — Apple, Samsung, Xiaomi) to a job-worker (typically the Indian contract manufacturer — Foxconn Bharat FIH, Dixon Technologies, Padget Electronics) without payment of tax. Rule 45 challan documents the movement; Form ITC-04 is filed quarterly declaring the year's job-work movements. Return of inputs must occur within one year (three years for capital goods) from the date of despatch, failing which the deemed-supply provisions of Section 143(3) and (4) apply. In the PLI LSEM context, this defines who is the principal (foreign brand-owner) and who is the manufacturer for scheme purposes (Indian contract manufacturer whose invoice value counts toward PLI eligible sales).