Re. Filing of ITC -04 in case of Contract Manufacturing / Job work ( pharma Products )

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SHIVANAND SUTAR (Querist)
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30 May 2022 We are exporter of pharmaceutical products. We purchase raw material from suppliers but don't bring it to our own place. Supplier gives delivery directly to third parties. ( Contract Manufacturing- Job worker )We get finished products manufactured from these third parties under loan license agreement basis. My query is whether we have to file ITC-04 or not considering following points 1) As goods directly move from suppliers to our loan licensee party we don't prepare any delivery challan. 2) We receive only invoice from suppliers with GST. 3) Third party (loan license)supplies finished goods with labor charges invoice. 4)Finished goods receive from third party is totally in different form than raw material supplied. Thus it is very much difficult to prepare ITC-04 in case of contract manufacturing

Udaya Chandran

Udaya Chandran (Expert)
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30 May 2022 ITC 04 is a must for any kind of job work contract. You have to prepare a delivery challan indicating the place from where the materials are supplied to the place where the same is sent for job work. After the completion of job work, you can bring back the goods from the job worker by the delivery challan issued by the job worker or you can prepare your own to bring back the same.

Delivery challans issued by you for sending materials to job worker and delivery challans issued by the job worker/or your own delivery challan for bringing back the goods should be mentioned in ITC 04.

You have mention the raw materials in the delivery challan when you send it for job work and mention the finished goods in the delivery challan when you bring back, these are all to be mentioned in ITC 04.