What Is ITC-04?

Understanding ITC-04 Form for Job Workers under GST in India

ITC-04 is a form that must be filed by taxpayers under the Goods and Services Tax (GST) regime in India who are engaged in job work. 

Key Features of ITC-04:

1. For Job Workers:

ITC-04 is specifically for taxpayers who are engaged in job work activities under GST. 

Job work refers to the process of processing or working on raw materials or semi-finished goods supplied by the principal manufacturer to the job worker.

2. Quarterly Filing:

Taxpayers engaged in job work are required to file ITC-04 on a quarterly basis.

The due date for filing ITC-04 is typically the 25th of the month following the end of the quarter.

3. Declaration of Goods Sent for Job Work:

ITC-04 requires taxpayers to declare details of goods sent for job work during the quarter. 

This includes the quantity and value of goods sent for job work.

4. Details of Goods Received Back:

Taxpayers also provide details of goods received back from the job worker during the quarter. 

This includes the quantity and value of goods received back.

5. Declaration of Inputs/Capital Goods:

Taxpayers declare details of inputs or capital goods sent to the job worker for job work, including the quantity and value of such goods.

6. Verification and Declaration:

Taxpayers verify the correctness of the details provided in ITC-04 and make a declaration regarding the accuracy of the information furnished.

 Key Sections in ITC-04:

Part I: Basic details such as GSTIN, legal name, and trade name (if any) of the taxpayer.

Part II: Details of goods sent for job work during the quarter, including the description, quantity, and value of goods.

Part III: Details of goods received back from the job worker during the quarter, including the description, quantity, and value of goods.

Part IV: Declaration of inputs or capital goods sent to the job worker for job work, including the description, quantity, and value of goods.

Part V: Verification and declaration by the taxpayer regarding the correctness of the information provided.

 Benefits of ITC-04:

Facilitates Compliance: ITC-04 facilitates compliance for taxpayers engaged in job work activities by providing a mechanism for reporting the movement of goods to and from the job worker.

Ensures Transparency: Helps ensure transparency in the job work process by providing a record of goods sent for job work and goods received back from the job worker.

Promotes Input Tax Credit (ITC) Reconciliation: Assists in reconciling input tax credit (ITC) claimed by the principal manufacturer with the goods sent for job work and goods received back.