Supply to goods for Job Work, have you filed your ITC-04

Job work is an indispensable part of the business and most of the manufacturing entities are required to get their work done from the job worker on a regular basis. However, whether it is Central Excise, Service tax or Goods and Service Tax, special provisions are always provided under the law for goods sent on job work basis.

Under CGST Law, a person sending goods for job work is required to file Form GST ITC-04 on GST portal to furnish information about goods sent for job work or goods received back from job work.

This article discuss the form GST ITC-04 in details:

1. What is job-work

• In common parlance, job work means outsourcing any of the process of business to any person outside the organisation.
• As per Section 2(68) of CGST Act, job work means ‘any treatment or process undertaken by a person on goods belonging to another registered person’. 
• The person who carries out such job is termed as ‘job worker’. 
• It is pertinent to note that in case of job work, ownership of the goods remains with the principal only. 
• Job worker is only required to carry out process on such goods and then job worker send such goods back to the principal or sent the same to any other person, as per directions of the principal.

2. What is form GST ITC-04

• As per Rule 45(3) of CGST Rules, 2017, every principal (person sending goods for job work) is required to file Form GST ITC-04.
• Form GST ITC-04 is a declaration form to be furnished by the Principal showing the details of inputs or capital goods dispatched to or received from a job worker in an applicable tax period.

3. What is the due date of furnishing form GST ITC-04

• Earlier, Form GST ITC-04 was required to be furnish on quarterly basis by all the entities.
• However, With effect from 1st October 2021, the frequency of filing the ITC-04 form has been revised vide notification number 35/2021 dated 24th September 2021 in following manner:

Aggregate Turnover	Frequency of Filing for GST ITC-04	Due date of filing of GST ITC-04
More than INR 5 Crores	Half yearly	25th of the month following the half year, i.e,Form April to September: 25th OctoberFor October to March: 25th April
Annual Aggregate turnover upto INR 5 Crores	Yearly	25th of month following the end of Financial year, i.e., 25th April of following year

4. What information is required to be furnished in form GST ITC-04

Read Also: “Inquiry” under section 70 and “Proceedings” the section 6(2) are different

Information in Form GST ITC-04 is required to be furnished in following 4 parts:

1. Table 4. Details of inputs/capital goods sent for job work (includes inputs/capital goods directly sent to place of business /premises of job worker)
2. Table 5A. Details of inputs/ capital goods received back from job worker to whom such goods were sent for job work; and losses and wastes
3. Table 5B. Details of inputs / capital goods received back from job worker other than the job worker to whom such goods were originally sent for job work; and losses and wastes
4. Table 5C. Details of inputs/ Capital goods sent to job worker and subsequently supplied from premises of job worker; and losses and wastes

Following information is required to be furnished under each tab:

Table 4. Details of inputs/capital goods sent for job work (includes inputs/capital goods directly sent to place of business /premises of job worker)

1. Category of Job worker: Registered or Unregistered
2. GSTIN of Job worker, in case of registered person
3. State of Job worker, in case of unregistered person
4. Details of challan through which goods have been sent for job work, i.e., Challan Number and date
5. Discription of Goods
6. Unit Quantity Code (UQC)
7. Quantity
8. Taxable Value
9. CGST, SGST or IGST
10. Cess

Above mentioned information is required to furnish for all the goods sent for job work during the period. If number of challans are more than 500 then person can file Form GST ITC-04 by using offline tool

Table 5A. Details of inputs/ capital goods received back from job worker to whom such goods were sent for job work; and losses and wastes

1. Category of Job worker: Registered or Unregistered
2. GSTIN of Job worker, in case of registered person
3. State of Job worker, in case of unregistered person
4. Original Challan Number
5. Original Challan date
6. Challan No. issued by job worker under which goods are received back;
7. Date of challa
8. Discription of Goods
9. Unit Quantity Code (UQC)
10. Quantity

11. Taxable Value
12. CGST, SGST or IGST
13. Cess

Table 5B. Details of inputs / capital goods received back from job worker other than the job worker to whom such goods were originally sent for job work; and losses and wastes

This table is to be furnished when inputs are sent for more than one job work at a time. In this table all information similar to table-5A is required to be furnished.

Table 5C. Details of inputs/ Capital goods sent to job worker and subsequently supplied from premises of job worker; and losses and wastes

In this table as well, principal, is required to furnish same information as furnished in Table 5A.

5. What is the late fee for delay in filing of Form GST ITC-04

Unlike Form GSTR-3B, no by default late fee is generated on delay in filing of Form GST ITC-04. Therefore, GST ITC-04 can be filed after due date without any late fee. However, penalty can be imposed by proper officer later on for non-compliance of provisions of GST Law.