May question is presently what is the late fee/penalty for Late Filing of Job Work return ITC-04 under GST. In case final product is exempt from tax & also if job work charges is exempt , is it necessary to file ITC -04.
09 July 2024
As of my last update, here are the details regarding the late fee/penalty for late filing of the GST ITC-04 return and whether it's necessary to file when the final product is exempt from tax and job work charges are exempt:
### Late Fee/Penalty for Late Filing of GST ITC-04:
1. **Late Fee**: The late fee for delayed filing of GST ITC-04 is Rs. 200 per day (Rs. 100 under CGST + Rs. 100 under SGST/UTGST) of default, subject to a maximum of Rs. 5,000. This means if you fail to file the return on time, you may be liable to pay a late fee calculated based on the number of days delayed.
2. **Interest**: In addition to late fees, interest is applicable at the rate of 18% per annum on the amount of tax payable from the due date of filing to the actual date of payment (if there is any tax liability).
### Exemption Scenario and Requirement to File ITC-04:
1. **Exemption of Final Product**: If the final product manufactured using job work is exempt from GST (for example, certain textiles or other exempted goods), you still need to file the ITC-04 return. The exemption of the final product from GST does not exempt you from filing the job work return.
2. **Exemption of Job Work Charges**: Similarly, if the job work charges are exempt from GST (for instance, certain types of job work may be exempt under specific notifications), you are still required to file the ITC-04 return.
### Conclusion:
- **Filing Requirement**: The requirement to file ITC-04 arises regardless of whether the final product or job work charges are exempt from GST. It is a compliance form that helps in tracking the movement of goods sent for job work and received back, along with the utilization of input tax credit (ITC) on such goods.
- **Late Filing Consequences**: Failure to file the ITC-04 return on time may attract late fees and interest as specified above. It's important to ensure timely compliance to avoid these penalties.
To ensure accuracy and compliance specific to your business and the latest GST regulations, it's advisable to consult with a GST expert or a qualified chartered accountant who can provide guidance based on the most current provisions and any recent updates in GST laws.
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