A Complete Guide to GST-ITC-04 Return Filing Process

GST ITC-4 Form Explained

Form GST ITC-04, prescribed under Rule 45(3) of the CGST Rules, is a mandatory declaration filed by a principal manufacturer to report the movement of inputs and capital goods sent to and received back from a job worker. It tracks inventory across all stages, including transfers between job workers and direct supplies made from a job worker's premises. The form captures key compliance details, such as the job worker's GSTIN, delivery challan numbers and dates, item descriptions, quantities, taxable values, and applicable tax rates.

Understanding Job Work Under GST Rules

Under Section 2(68) of the CGST Act, 2017, job work means any treatment or process undertaken by a person on goods belonging to another registered person. The person carrying out such treatment or process is referred to as the job worker.

Who Must File Form GST ITC-04?

A registered principal sending inputs or capital goods to a job worker must furnish the prescribed information in Form GST ITC-04, as per Rule 45 of the CGST Rules.

How Often Do You Need to File Form GST ITC-04?

Let’s look at how filing frequency works: your GST ITC-04 submission schedule depends entirely on your aggregate turnover from the previous financial year.

• Turnover Exceeding ₹5 Crore: Taxpayers with an aggregate turnover above ₹5 crore in the preceding financial year are required to file Form GST ITC-04 on a half-yearly basis. The filings cover two periods: April to September and October to March.
• Turnover Up to ₹5 Crore: Taxpayers with an aggregate business turnover up to ₹5 crore in the preceding financial year are required to file Form GST ITC-04 on an annual basis for the entire financial year.

The current GST portal utility for Form ITC-04 fully supports and confirms this filing structure.

Complete Guide to Information Reported in Form GST ITC-04

Form GST ITC-04 broadly covers the following key reporting details:

• Inputs and capital goods sent to a job worker.
• Inputs and capital goods received back from the original job worker, including losses and wastage.
• Goods received back from a subsequent job worker.
• Inputs or capital goods supplied directly from the job worker’s premises to customers.
• Relevant challan and goods-related details.

Form GST ITC-04 uses dedicated sections for goods sent, returned, or directly supplied, ensuring streamlined tracking of job work transactions.

What Is the Time Limit for Returning Goods Under GST Job Work?

Under the job-work provisions, it is important to note that inputs are typically required to be returned or supplied within one year. In contrast, capital goods must generally be returned or supplied within a three-year timeframe from the date they are sent out. These timelines are subject to the relevant regulations and provisions that apply to the specific circumstances.

If the allowed time limit is surpassed, the transaction could be seen as a transfer from the main company to the person doing the work. This would lead to certain tax implications and compliance requirements that need to be followed.

Step-by-Step Guide to Filing Form GST ITC-04

Follow these steps to file Form GST ITC-04 on the official GST portal:

• Visit the GST Portal and log in with valid credentials.
• Go to Services → Returns → ITC Forms.
• Select GST ITC-04.
• Choose the relevant financial year and return period.
• Enter the required details in the applicable tables.
• Provide details of goods sent to job workers along with the relevant challan information.
• Report goods received back from the original or subsequent job worker.
• Enter details of goods supplied directly from the job worker’s premises, wherever applicable.
• Save and verify the entered information.
• Select the authorised signatory and submit the form using the applicable authentication method, such as DSC or EVC.
• After successful filing, an acknowledgement/ARN is generated.

When working with larger data sets related to taxes, it's important to use the ITC-04 offline tool to prepare and check your information before you upload it to the GST portal. The official tool from GSTN offers easy-to-follow instructions for choosing the financial year and the specific time period for your tax returns, which helps guide you through the filing process.

Read Also: Learn About GSTR 9 & 9C Annual Return Filing Form Under GST

Conclusion

It's important for businesses to keep clear records when sending materials or equipment for job work. This includes tracking what items are sent, what comes back, and if any are passed on to other job workers. By doing this, companies can ensure they follow the rules related to GST (Goods and Services Tax) and keep their financial records in good order. This helps them stay compliant with the necessary regulations and avoid any issues down the line.