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ITC04 return reagading filling

Ankur patel (Audiotr) (43 Points)

24 March 2019

Hello my questions regarding ITC04. In that if mfg sent to jw 100 kg at 20 rs so taxable value 2000. Now when. Je to her/his process's and lost some of metiral after completin of jw. It's only. 80kg and je work
processing charge. Is rs 5 per kg. Then. Je sent that good to mfg. Now question is what I have to enter in itc04 is quantity calum is 80kg or 100kg ??

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12 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 24 March 2019

Dear Ankur

Whether loss of 20kg is due Manufacturing Process ????

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Ankur patel (Audiotr) (43 Points)
Replied 24 March 2019

yes due to mfg. loss

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 24 March 2019

No. That is not an intention of the law and lawmakers. ITC on normal wastage need not be reversed.

& As per Section 143(5) of CGST Act : Any waste & scrap generated during the Job work may supplied by the job worker directly from his business place of Business on payment of Tax , if such Job Worker is Registered or by Principal if job worker is Not Registered.

Its a normal loss in terms of the manufacturing process. Hence for 20kg (Scrap or wastage) Can be deal as per section 143(5)

Raja (Accountant) (97 Points)
Replied 28 June 2019

Sir,

We are the manufacturing unit, we have sent raw materials & semi-finished goods to the job worker from our end. But we have issue DC only, not mentioned the tax amount in it. In ITC-04, it is mandatory for filling tax amount, how will we file ITC 04?

Siddaraju S Krishnappa (GST Expert) (190 Points)
Replied 28 June 2019

While removing your goods to Job worker in your DC there is no need of mentioning details of Tax. But while filing ITC04, it is mandatory to show the tax details

I have attached the format of ITC 04 for your reference, have look

Attached File : 1189405 20190628132543 itc04.pdf downloaded: 93 times

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Raja (Accountant) (97 Points)
Replied 28 June 2019

Okay Sir,

Our Job workers have some closing stocks of our material. If I will show the Outward & Inward quantities with tax, remaining tax amount will be on ITC-04. How it will be treated? Is it to be reversable or not? Make clear me.

Siddaraju S Krishnappa (GST Expert) (190 Points)
Replied 28 June 2019

can you please elaborate your question

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Raja (Accountant) (97 Points)
Replied 28 June 2019

My question, is the showing tax amount in ITC-04 is liable to pay?

Siddaraju S Krishnappa (GST Expert) (190 Points)
Replied 28 June 2019

itc-04 is an intimation of details or information

if you are principle supplier who usually send goods to job worker

you are required to file itc-04
not to make payment, just to declaring the information to avail input tax credit