Form GST ITC 04

Form GST ITC 04
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What is ITC 04? | What is  Form GST ITC 04?


Form GST ITC-04 is a declaration form that provides the details of inputs or capital goods dispatched to or received from a job worker.

ITC 04 consists of the details of inputs & capitals goods that are
– Dispatched to job workers.
– Received from job workers.
– Sent from one job worker to another.
– Supplied from the premises of job workers.

Who has to file ITC 04?

Form GST ITC-04 is to be furnished by registered manufacturers(Principals) who send goods for job work.

What happens if goods sent on job work are not returned?


If goods sent on job work are not returned within the specified time then such goods will be considered as deemed supply on the date on which goods were sent for job work by the Principal. GST on the above transaction is to be paid.

Note: If the principal manufacturer wants to sell goods directly from the job worker’s place of business then the job worker’s place of business has to be shown as an additional place of business. (It is only possible if the job worker is not separately registered under the GST regime)

What is the specified time within which the goods sent on job work should be returned to the principal manufacturer?  


In the case of capital goods – within 3 years.
In the case of inputs – within 1 year.

Note: If goods are sent from Principal’s place of business to job worker’s place of business, then the date of sending the goods will be considered for calculation of period. If goods are sent by the Principal directly to the job worker’s place of business then the date of receiving the goods will be considered for calculation of period.

Note: Specific exemption from the above time limits is available for items like moulds, jigs, fixtures, tools required for job work and are sent by the Principal to the job worker.

What is the due date to file ITC 04?


Up to September 2021 – ITC 04 was a quarterly return and the due date to furnish was the 25th day of the succeeding month after the end of the quarter.

After September 2021 – ITC 04 is now a half-yearly or yearly return based on the AATO of the preceding year. (vide a CGST Notification no. 35 dated 24th September 2021)

# Half-yearly filing if preceding FY’s AATO exceeds Rs 5 Crores. The due date to furnish will be the 25th day of the succeeding month after the end of the half-year. i.e 25th October and 25th April.

# Yearly filing if preceding FY’s AATO does not exceed Rs 5 Crores. The due date to furnish will be the 25th day of the succeeding month after the end of the year. i.e 25th April.

Check the latest updated due date for filing ITC 04

What is the penalty/late fees for ITC 04?


There is no specific penalty or late fees prescribed for the delay in filing of GST ITC 04.

Note: As per section 125, a general penalty of up to Rs 25,000/- can be levied for contravention of provisions of Act and Rules made thereunder.

Conclusion

Based on the feedback from the manufacturers across all the industries where job work is required, the declaration form (GST ITC 04)  is not being furnished. Some of the possible reasons for not filing the form can be there is no restriction on availing input tax credit on goods sent for job work, there is no specific penal provision like late fees or interest for non-filing of the form.  And most importantly there is no clarity on how filing ITC 04 helps the taxpayer or Government.


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About CA Ankita Khetan 188 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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