Form GST ITC-04 – Reporting Job Work Transactions: A Complete Guide for CAs

For manufacturers and principal businesses, job work under GST is common practice. However, compliance does not end with sending goods to a job worker. Every movement of inputs or capital goods for job work must be reported to the GST department through Form GST ITC-04.

For Chartered Accountants advising such clients, timely and accurate filing of ITC-04 is critical — not just for input tax credit (ITC) tracking, but also to avoid disputes during audits.

What is Form GST ITC-04?

Form GST ITC-04 is a quarterly statement that a principal manufacturer must file, reporting:

• Inputs/capital goods sent to job workers.

• Inputs/capital goods received back from job workers.

• Inputs/capital goods supplied directly from job worker’s premises.

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Who Needs to File ITC-04?

• Principal manufacturer sending inputs/capital goods for job work.

• Businesses that supply goods directly from the job worker’s premises under Section 143 of CGST Act.

Job workers themselves are not required to file ITC-04 — the obligation lies with the principal.

Due Dates for Filing Form GST ITC-04

• Quarterly filing: Must be filed by the 25th day of the month following the quarter.

• Example: For April–June quarter, due date is 25th July.

Failure to file on time may invite notices and lead to ITC disputes.

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Step-by-Step Filing Process

1. Login to GST Portal – Using principal’s GSTIN.

2. Navigate to ITC-04 – Go to Services → Returns → ITC Forms.

3. Enter Details –

   • Goods sent to job worker (with challan number & date).

   • Goods received back.

   • Goods supplied directly from job worker’s premises.

4. Upload Data – Bulk upload utility available for large transactions.

5. Submit with DSC/EVC – File and generate acknowledgement.

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Documents & Records Needed

CAs must advise clients to maintain proper documentation for ITC-04 filing:

• Delivery challans issued while sending goods to job workers.

• Job work returns showing inputs received back.

• Invoices for direct supplies from job worker’s premises.

These records are critical for ITC validation during departmental audits.

Common Challenges in ITC-04 Filing

1. Mismatch between challans and ITC-04 entries – leads to queries.

2. Delayed filing – principal may lose ITC eligibility if goods are not received back within the prescribed period (1 year for inputs, 3 years for capital goods).

3. Bulk data errors – incorrect challan numbers or GSTIN mismatches during upload.

4. System rejections – due to incomplete or duplicate entries.

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Penalties for Non-Compliance

• General Penalty: ₹50 per day (₹25 CGST + ₹25 SGST), capped at ₹10,000.

• Risk of ITC Reversal: If goods are not received back or supplied within the statutory period, ITC may need to be reversed with interest.

Best Practices for CAs

• Implement monthly reconciliations between challans and ITC-04 records.

• Train clients’ staff to maintain accurate job work registers.

• File well before due dates to handle system rejections.

• Track return of goods within statutory timelines to avoid ITC reversal.

Key Takeaway

Form GST ITC-04 is more than a compliance requirement — it is a safeguard for seamless input tax credit. Chartered Accountants must ensure clients treat job work reporting with the same seriousness as GSTR-1 or GSTR-3B filing.