ITC-04 Online Filing Procedure

ITC-04 Online Filing Procedure

Know All About Form ITC-04 Under GST Compliance

Introduction

Section 19 of the CGST Act, 2017 defines provisions in respect of ITC for inputs and capital goods sent for Job Work. The Principal or the registered person can claim ITC on inputs or capital goods sent to a job worker for Job Work.

Furthermore, the Principal can also claim ITC if such inputs or capital goods are sent to the job worker for job work without being first brought to the place of business of the Principal.

Thus, a Principal needs to report the details of the goods sent or received from a job worker during a particular quarter in Form GST ITC-04. This article talks about what is Form GST ITC-04, ITC 04 Due Date, ITC 04 Applicability, and ITC 04 Penalty.

Summary of Conditions to Get the ITC on Goods Sent for Job Work

A. The goods can be sent to the job worker:

• From the place of business of the principal
• Directly from the supplier’s place of supply of such goods ITC will be allowed in both the cases.

B. The effective date for goods sent depends on the place of business:

• Sent from the place of business of the principal- Date of goods sent out
• Sent directly from the supplier’s place of supply of such goods- Date of receipt by the job worker

C. Time duration in which the goods sent to the principal manufacturer must be received is:

• Capital Goods for 3 years
• Input Goods for 1 year

D.If in any case, the goods are not received within the time period which is mentioned above will be considered as the supply from the effective date and tax will be charged.

What is Form GST ITC 04?

GST ITC-04 is a Form that contains details of the inputs or capital goods sent to and received back from such a job worker. Such a form needs to be filed by the registered manufacturers/Principal sending inputs or capital goods on job work every quarter.

Further, the Principal sends inputs or capital goods to a job worker by issuing a Challan to the job worker in respect of such inputs or capital goods.

Challan is also issued in circumstances where goods are sent:

• directly to a job worker or

• from one job worker to another job worker. In this case, the Challan would be issued by the Principal or the job worker sending goods to another Job Worker. Furthermore, the Challan issued by the Principal, however, must be endorsed by the Job Worker. This is undertaken by indicating the quantity and description of goods, where goods are sent by one job worker to another or are returned back to the Principal. Also, the Challan endorsed by the job worker could be further endorsed by another job worker. This is again by indicating the quantity and description of goods, where goods are sent by one job worker to another or are returned back to the Principal.

Thus, the details of such Challans with regards to the inputs or capital goods sent or received from a job worker during a particular quarter are specified in Form GST ITC-04.

Form ITC 04 Components

The quarterly declaration by the registered manufacturers sending inputs or capital goods for job work in ITC-04 has the following components.

1. Basic Details of the Manufacturer

Section 1. – GSTIN

This includes the Goods and Services Tax Identification Number (GSTIN) of the Principal/Registered Manufacturer.

Section 2. – (a) Legal Name

This field contains the Legal Name and not the Trade Name of the registered manufacturer/principal.

Section 2. – (b) Trade Name if Any

In case the business of a registered manufacturer has a trade name, it must be specified in this field.

Section 3. – Period

In this section, the principal must specify the quarter for which Form GST ITC-04 is furnished as well as the financial year.

2. Details of Inputs/capital goods sent for job work

Section 4. Details of inputs/capital goods sent for job work (includes inputs/capital goods directly sent to place of business /premises of job worker)

This section includes a table that contains details such as:

• GSTIN in case of registered job worker and State in case of unregistered job worker
• Challan Number
• Challan Date
• Description of goods
• Unique Quantity Code (UQC)
• Quantity
• Taxable Value
• Type of goods (inputs or capital goods)
• Rate of tax, that is, CGST, SGST/UTGST, IGST and Cess

3. Details of Inputs/capital goods Received Back From the Job Worker

Section 5. – Details of inputs/capital goods received back from job workers or sent out from the business place of job work

This section is divided into three parts. Each part contains a table specifying details that are as follows

(A) Details of inputs/ capital goods received back from job worker to whom such goods were sent for job work, and losses and wastes

Part A contains a table specifying the following details

• GSTIN in case of registered job worker and State in case of the unregistered job worker.
• Challan Number issued by the job worker under which goods have been received back. This column in the table is mandatory to be filled where fresh Challan is required to be issued by the job worker. Otherwise, such a column is optional.
• Date of Challan issued by the job worker under which goods have been received back.
• Description of goods
• UQC
• Quantity
• Original Challan Number under which goods have been sent for job work. This column in the table may not be filled in cases where one on one correspondence between goods sent for job work and received back after the job work is not possible.
• Nature of the job work done by the job worker.
• Losses and wastes including the UQC and the quantity of goods.

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