ITC 04 FILING ONLINE WITH ITC PROCESS ON JOB WORK
Job work is defined as the process which is undertaken on goods by a person that belongs to another registered person. The ownership of goods does not shift to the job-worker but it remains with the main manufacturer. The work of the job worker is to carry out the process which is given by the main manufacturer on the goods that are supplied to him.
The person who is doing job work is called a job worker.
For example- a big belt manufacturer (principal) sends out the half-made belts (upper part) to the smaller manufacturers (job worker) to punch the hole. The smaller manufacturers (job worker) send back the belts to the big manufacturer (principal).
Input Tax Credit (ITC) on Job Work
The principal manufacturer can avail the ITC paid on the purchase of goods sent on job work.
But there are also certain conditions which are given below-
ITC (Input Tax Product) will be allowed in both cases
To receive back the goods, is there any time limit for the manufacturer
Yes, the principal manufacturer must receive the goods back within the period given below:
Summary of Conditions to Get the ITC on Goods Sent for Job Work
A. The goods can be sent to the job worker:
B. The effective date for goods sent depends on the place of business:
C. Time duration in which the goods sent to the principal manufacturer must be received is:
D. If in any case, the goods are not received within the time period which is mentioned above will be considered as the supply from the effective date and tax will be charged.
Form GST ITC 04
The principal manufacturer must submit the FORM GST ITC-04 every quarter. Given below are the details that the principal manufacturer must include in the challans-
GST ITC 04 Offline Utility
ITC 04 offline tool is a utility to discover all the details when the manufacturer has sent any goods(capital or input type) to a Job Worker and relevant dealings. Download the offline utility will help the manufacturer in preparing ITC 04 even when there is no internet. Also, it would assist in the bulk upload of the invoice to the GST portal.
How to Create ITC 04 Challan Offline?
There are 2 parts in which it can be provided-
The goods sent to a job worker and
The goods received from the job worker
1. Details of capital/inputs goods sent to job-work
The details like challan number, GSTIN, tax amount, etc. must be mentioned and all these details are available in challans.
2. Goods received from the job worker or goods sent out from the business place of job-work
The details of the goods that are received back from the job worker will be mentioned here.
All the details of the original and new challans must be mentioned
Guide for Filing ITC-04 Form on GST portal:
Given below is the step-by-step guide for filing the ITC-04 form on the GST portal.
Step 1: Log in to the GST Portal
Step 2: Go to the Services -> Returns -> ITC Forms
Step 3: Go to “Prepare Offline” -> Upload invoices | After the upload of invoices click ‘Initiate Filing’.
Step 4: Select the tax period, Check the taxable amount and other details
Step 5: At last, file the return with DSC or EVC as applicable
The government has given ample time to the job workers to return the goods back to the principal manufacturer. With the help of GST, there will be transparency in the details of ITC on goods sent for job work.
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