All About GST ITC-04 Return

What is GST-ITC-04?

Form GST-ITC-04 is the Quarterly return filed by the Manufacturer to take credit of Tax paid on goods purchased and sent to Job-work. Details to be disclosed in return

• Goods sent for Job-work and received back
• Details of Quantity and description of goods
• Mode whether Goods are returned back to Principle or Sent to another Job worker for further work or Directly sold out to customer from Job-workers place

Who is Job-worker?

Section 2(68) of the CGST Act, 2017 defines job work as 'any treatment or process undertaken by a person on goods belonging to another registered person'. The one who does the said job would be termed as 'job worker

Conditions for claiming credit of tax paid on goods sent to Job-worker as per Rule 45?

• Goods to be sent from principal's place of Business or from Place of supply of supplier along with challan.
• The Goods must be received back in 3 years in case of capital goods & 1 year in case of Input Goods.

If not received back in specified time it will be treated as supply and the principal needs to disclose same in GSTR-1 and challan will be treated as Tax Invoice and he needs to pay tax along with interest on such supply from effective date which is :

• Date of Good's sent out in case of Sent from principal's place of business or
• Date of Receipt by Job-worker in case of sent by supplier.

Relaxation granted under rule 45 (3) of the CGST Rules

Businesses with an annual aggregate turnover exceeding INR 5 crore must file ITC-04 half yearly by October 25th and April 25th for the April-September and October-March quarters, respectively. Those with a turnover of up to Rs. 5 crore file ITC-04 annually by April 25th. 
 

Process of filing GST-ITC-04 form

1. Go to www.gst.gov.in
2. Click Services > Returns > ITC Forms
3. Click Prepare Online on GST-ITC-04
4. Select Financial year and period and search
5. Click Yes
6. Page will be displayed as shown:

• Table 4 goods sent out to Job-worker
• Table 5A goods received back from original Job-worker
• Table 5B goods received back from Subsequent Job-worker
• Table 5C goods sold directly to customers from Job-workers place

• In Table 4 Select Registered or unregistered & add relevant particulars such as GSTN, Challan number, Challan date.

• Add Item details such as Description of goods, UQC, Quantity, Taxable value, Rate of Tax & Cess, click Add to Add entries against same challan.

• Click Save if any,
• Add New Challan and repeat the process (If number of challan exceed 500 use offline utility)
• If Job worker is unregistered add same details in Table 4 after selecting unregistered from drop down and select state.
• Fill Table 5A for goods received back from Job-work along with Losses if any, where details in same way needs to be added and carefully add the original Challan number and original challan date to link the entries.

• Saved challans will be displayed under processed challans tab

• In Table 5B, Add 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 if any enter details in same way as earlier and link with original challan date and number.

• Save all entries
• In Table 5C, add Details of inputs/ Capital goods sent to job worker and subsequently supplied from premises of job worker; and losses and wastes if any,

• Invoice details issued by Principal for supply made from the premises of the job worker, are mandatory to be filled up in Form GSTR-1 by the Principal.
• Click Add to Add entries and save all.
• Add details added under relevant table will be displayed on tiles
• Click on File Return
• Select Authorized signatory
• Files with EVC or DSC
• After filing successfully Acknowledgement Reference number will be generated.

One can use offline utility to file the GST-ITC-04 where, after adding all details under the relevant table in ITC-04 offline utility and validating the file, JSON needs to be uploaded on portal to proceed with filing.