itc 04

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hppaliwal

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31 December 2017 if ITC 04 not filed up to 31 december 2017.what consequences arisesd

CA Suresh Jain

CA Suresh Jain (Expert)
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01 January 2018
File ITC 04 now with penalty; not filing at all may be deemed that such supplies had been supplied by the principal to the job worker on the day when the said inputs or capital goods were sent out and the said supply shall be declared in FORM GSTR-1 and the principal shall be liable to pay the tax along with applicable interest.

hppaliwal

hppaliwal (Querist)
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02 January 2018 what amount penalty

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Asha Kanta Sharma

Asha Kanta Sharma

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02 August 2024 If **ITC-04** (a form used for reporting the details of goods sent to job workers and received back) was not filed up to December 31, 2017, the following consequences and penalties might arise under the GST law:

### Consequences of Not Filing ITC-04

1. **Penalties for Non-Compliance:**
- **Late Fee:** According to the GST law, if ITC-04 is not filed within the stipulated time, you may be liable to pay a late fee. The late fee for delayed filing of ITC-04 is generally ₹200 per day (₹100 CGST + ₹100 SGST) subject to a maximum of ₹10,000.
- **Interest and Penalty:** In addition to the late fee, if ITC-04 is not filed and it impacts the claim of ITC, there might be interest or additional penalties based on the specifics of the case.

2. **Impact on ITC Claim:**
- **Rejection of ITC:** The delay in filing ITC-04 can lead to rejection or denial of ITC claims related to goods sent to job workers, as ITC-04 is essential for proper accounting of such transactions.

3. **Compliance Issues:**
- **Non-Compliance Notices:** The tax authorities may issue notices for non-compliance, and you might be required to provide explanations or rectify the situation.

4. **Audit and Scrutiny:**
- **Increased Scrutiny:** Non-filing of ITC-04 can lead to increased scrutiny during audits or inspections by GST authorities.

### Penalty Amount

- **Late Fee:** The maximum late fee for non-filing of ITC-04 is ₹10,000 (₹5,000 CGST + ₹5,000 SGST), which accrues at ₹200 per day of delay.
- **Additional Penalties:** Depending on the case, additional penalties could be imposed if there is a deliberate attempt to evade tax or if there are significant discrepancies.

### Steps to Address Non-Filing:

1. **File the ITC-04:** If you have not filed the form, you should do so as soon as possible. Even if the deadline has passed, filing the form will help mitigate some of the penalties.

2. **Pay the Late Fee:** Be prepared to pay the late fee and any other penalties as prescribed by the GST law.

3. **Consult a Tax Professional:** It is advisable to consult with a tax professional or GST consultant to handle the situation appropriately and ensure compliance.

4. **Keep Records:** Maintain thorough records of all correspondence and submissions related to ITC-04 to provide evidence in case of disputes or audits.

By addressing the non-filing issue promptly and ensuring compliance with GST regulations, you can reduce the risk of additional penalties and complications.