ITC 04

1. Basic Details:

   • GSTIN of the principal manufacturer
   • Legal name and trade name (if any)
   • Period for which the return is filed (quarterly)

2. Details of Goods Sent for Job Work:

   • Description of goods sent for job work
   • HSN code (Harmonized System of Nomenclature code)
   • Quantity of goods sent
   • Invoice/challan details

3. Details of Goods Received Back from Job Work:

   • Description of goods received back after job work completion
   • HSN code
   • Quantity of goods received
   • Date of receipt

4. Details of Goods Sent from One Job Worker to Another:

   • Description of goods transferred from one job worker to another
   • HSN code
   • Quantity of goods transferred
   • Invoice/challan details

5. Details of Goods Supplied Directly from Job Worker’s Premises:

   • Description of goods supplied directly from the job worker’s premises to customers
   • HSN code
   • Quantity of goods supplied
   • Invoice/challan details

Importance of ITC-04

• Compliance: Ensures compliance with GST regulations regarding job work transactions.
• Transparency: Facilitates transparency in the movement of goods between the principal manufacturer and job workers.
• Inventory Management: Helps in maintaining accurate records of goods sent for job work, received back, and transferred between job workers.
• Credit Reconciliation: Assists in reconciling Input Tax Credit (ITC) related to goods sent for job work and received back, ensuring accurate claim of ITC.

Filing Process

1. Data Preparation: Gather all relevant details regarding goods sent for job work, goods received back, goods transferred between job workers, and goods supplied directly from job workers’ premises.

2. GST Portal Login: Access the GST portal using valid credentials.

3. Form Filling: Enter the required details accurately into the ITC-04 form.

4. Verification and Submission: Verify the filled details thoroughly and submit the form.

5. Acknowledgment: Download the acknowledgment or receipt generated after successful submission for record-keeping.

Penalties for Non-Compliance

Late filing of ITC-04 may attract penalties, including late fees and interest charges, as per GST regulations. It is essential for manufacturers and job workers to adhere to the filing deadlines to avoid such penalties.

Benefits of ITC-04

• Legal Compliance: Helps businesses comply with GST laws related to job work transactions.
• Operational Efficiency: Streamlines the process of reporting and tracking goods sent for job work and received back.
• Audit Readiness: Facilitates easier audits by maintaining comprehensive records of job work transactions.

ITC-04 is crucial for manufacturers engaging in job work activities, ensuring proper compliance and transparency in their supply chain operations under GST.

• Details of Goods Sent for Job Work: Records the details of goods sent from the principal manufacturer to job workers for processing, repair, treatment, or other manufacturing activities.
• Details of Goods Received Back: Captures the details of goods received back by the principal manufacturer after the job work is completed.
• Details of Goods Sent from One Job Worker to Another: Records the transfer of goods from one job worker to another for further processing or completion of the job work.
• Details of Goods Supplied Directly from Job Worker’s Premises: Includes details of goods that are directly supplied from the job worker’s premises to the customers, without being sent back to the principal manufacturer.
• Details of Goods Supplied Directly from Job Worker’s Premises: Description of goods HSN code Quantity of goods supplied Invoice/challan details

1. Purpose of ITC-04:

   • Explain the purpose and significance of filing ITC-04 under GST. Highlight that it pertains to goods sent to job workers and received back after processing or other treatments.

2. Scope and Coverage:

   • Define the scope of transactions covered under ITC-04, including goods sent for job work and their subsequent return after processing, testing, repair, or other operations.

3. Details of Goods Sent for Job Work:

   • Provide information on the types of goods sent for job work, including their quantity, description, and value. Specify whether these goods were sent under challan or any other document.

4. Details of Goods Received After Job Work:

   • Disclose details of goods received back from job workers, including the quantity, description, and value. Highlight any discrepancies or differences compared to the goods initially sent.

5. Compliance with GST Regulations:

   • Confirm compliance with GST regulations regarding the timely filing of ITC-04, including due dates and any penalties or interest implications for non-compliance.

6. Verification and Reconciliation:

   • Explain the procedures and controls in place to verify and reconcile the goods sent for job work and those received back, ensuring accuracy in reporting.

7. Documentation and Recordkeeping:

   • Outline the documentation maintained for each transaction covered under ITC-04, such as invoices, delivery challans, job work orders, and any other relevant records.

8. Internal Controls and Processes:

   • Describe the internal controls and processes implemented to monitor and track goods sent for job work, ensuring compliance with GST laws and regulations.

9. Risk Management:

   • Discuss any potential risks associated with the job work process and measures taken to mitigate these risks, such as ensuring proper documentation and adherence to statutory requirements.

10. Impact on Financial Statements:

    • Provide insights into how transactions reported in ITC-04 impact the company's financial statements, including inventory valuation and cost of goods sold.

11. Audits and Reviews:

    • Mention how the accuracy and completeness of ITC-04 filings are verified through internal audits, reviews, or external audits conducted by GST authorities.

12. Future Compliance and Outlook:

    • Discuss any planned improvements or initiatives to enhance compliance with ITC-04 requirements and streamline processes related to job work under GST.