How to File ITC-04 for Goods Sent to a Job Worker: Complete Guide

How to File ITC-04 for Goods Sent to a Job Worker: Complete Guide

If your business sends raw materials, semi-finished goods, or capital goods to an outside vendor for processing before they come back to you, you are dealing with what GST law calls "job work." And if that sounds like your supply chain, there is a specific compliance obligation attached to it that many manufacturers and traders discover only after they have already been doing job work for a while: Form ITC-04.

It is easy to overlook because the goods never technically leave your ownership, so it does not feel like a "sale" that needs reporting. But GST law tracks the movement of goods sent for job work quite closely, and ITC-04 is how you report that movement. This guide explains what the form is for, who needs to file it, and exactly how to do it on the GST portal.

Many businesses that outsource processing steps only realise this requirement exists when their CA asks for the delivery challan register during an annual review, by which point several quarters of movements may already be unreported. Getting into the habit of tracking this from day one is far easier than reconstructing a year's worth of job work data after the fact.

What is ITC-04 and Why Does It Matter

ITC-04 is a statement that a principal manufacturer or business must file to report goods sent to a job worker for processing, and goods received back from the job worker (or sent onward from one job worker to another). It essentially tracks the movement of inputs and capital goods that leave your premises without a sale taking place, since ownership stays with you even though the goods are physically elsewhere.

This matters for two reasons. First, if goods sent for job work are not received back (or supplied further) within a prescribed time limit, GST law treats it as if you supplied those goods, potentially attracting tax liability. Second, ITC-04 gives the department visibility into these movements so that input tax credit claimed on those goods is not misused or left unaccounted for.

For manufacturing businesses that regularly send components out for processes like machining, printing, embroidery, or assembly, ITC-04 is a routine but easy-to-miss compliance requirement, since it operates alongside your regular GSTR-1/GSTR-3B filings rather than replacing them.

It is also worth understanding why this form exists from the department's perspective. Since the principal continues to hold ownership of goods that are physically located elsewhere, there is an inherent risk of goods being diverted, sold without invoicing, or simply lost track of within a long job work chain. ITC-04 gives the department a documented trail of where inputs and capital goods physically are at any point, which in turn protects the principal's own ITC position if questioned later.

Who Must File ITC-04 and When (Due Date)

Any registered person (principal) who sends inputs or capital goods to a job worker, or receives them back, is generally required to file ITC-04 to report these movements. This is common in industries like textiles, auto components, electronics assembly, jewellery, and general manufacturing where outsourced processing is routine.

Turnover-based filing frequency: In recent years, the filing frequency for ITC-04 has generally been linked to aggregate annual turnover, with businesses above a certain threshold filing more frequently (for example, half-yearly) and smaller businesses filing annually. Because this threshold and frequency structure has changed across notifications, please verify the current applicable frequency for your turnover before assuming your filing cycle.

Due date: ITC-04 is generally due at the end of the period following the relevant half-year or financial year, depending on your applicable frequency. Because due dates and relief measures (including exemptions for smaller taxpayers in certain periods) have shifted over time, please verify the current due date and applicability on the GST portal or with your CA before your filing window.

Note: Some smaller taxpayers below a specified turnover threshold have, in certain periods, been given relief from filing ITC-04 or allowed simplified annual filing instead of more frequent filing. Confirm your current obligation based on your turnover before deciding whether and how often you need to file.

Documents and Data Required

Before filing ITC-04, gather the following details for the relevant period:

• Delivery challans issued for goods sent to the job worker (these are the primary document tracking each movement)
• Details of the job worker — GSTIN (if registered), name, and address
• Description and quantity of goods sent, including HSN codes
• Date of dispatch for each consignment sent for job work
• Details of goods received back, including date of receipt and any goods that were not returned within the applicable time limit
• Details of goods sent from one job worker to another, if applicable, for multi-stage processing
• Details of goods supplied directly from the job worker's premises, if you chose to sell finished goods without bringing them back first
• Waste and scrap generated during job work, and how it was accounted for
• Opening balance of goods held by job workers from the previous period, if this is not your first filing

Since ITC-04 essentially reconciles the physical movement of goods, having your delivery challan register well maintained through the year makes this filing far less painful than reconstructing it from memory or invoices alone.

Step-by-Step Process to File ITC-04 on the GST Portal

1. Log in to the GST portal using your GSTIN credentials.

1. Navigate to Services > Returns > ITC Forms, then locate "GST ITC-04" among the available forms.

1. Select the relevant period (half-yearly or annual, based on your applicable filing frequency) from the dropdown.

1. Choose "Prepare Online" or "Prepare Offline" — the offline utility is often preferred by businesses with a high volume of delivery challans, since data can be uploaded in bulk via a JSON file.

1. Enter details of goods sent for job work under the relevant table — including job worker GSTIN, challan number, challan date, description of goods, and quantity.

1. Enter details of goods received back from job work in the corresponding table, matching each receipt against the original dispatch challan where possible.

1. Report any goods sent from one job worker to another, or goods supplied directly from the job worker's premises to a customer, under the applicable separate tables.

1. Report losses, waste, or scrap generated during the job work process, along with how it was disposed of or accounted for.

1. Review goods not yet returned within the prescribed time limit — these may need to be reported as deemed supplies, so review this carefully with your accountant before submission.

1. Preview the statement and verify all challan-wise entries against your physical delivery challan register.

1. Submit using DSC or EVC, as applicable to your entity type.

1. Download the filed acknowledgment and retain it along with your challan register for future reference.

Fees, Late Fees & Interest in 2026 (Please Verify Current Rates)

ITC-04 does not typically involve a direct tax payment at the time of filing, since it is a reporting statement rather than a return with a tax liability computation, but delays in filing can still attract consequences. Please verify current provisions before assuming any of the below:

• Late fees for delayed filing of ITC-04 have been treated differently across notification cycles, with some periods offering relief or capped fees — verify the current position rather than assuming a flat rate.
• If goods sent for job work are not received back or supplied onward within the prescribed time limit, this can be treated as a deemed supply, potentially attracting GST liability plus interest on the value of those goods, even though ITC-04 itself may show no direct tax payable.
• Persistent non-filing can also raise questions during departmental audits about input tax credit eligibility on goods sent for job work.

Because the financial exposure here often comes from the "deemed supply" angle rather than a straightforward late fee, it is worth having a professional review your job work ageing (how long goods have been out with job workers) alongside the ITC-04 filing itself.

Common Mistakes Businesses Make

• Not maintaining proper delivery challans for goods sent to job workers, making the ITC-04 filing reconstruction exercise painful.
• Losing track of the time limit within which goods must be received back or supplied onward, resulting in unexpected deemed supply liability.
• Forgetting to report goods sent from one job worker to another in multi-stage manufacturing processes.
• Not accounting for waste and scrap generated during job work.
• Assuming ITC-04 is optional for smaller businesses without checking the current threshold and frequency rules.
• Mismatched quantities between what was sent, what was received back, and what was reported, due to poor challan reconciliation.
• Ignoring goods supplied directly from the job worker's premises, which still need to be reported even though they never physically returned to the principal.
• Filing ITC-04 without cross-checking against ITC already claimed on the inputs or capital goods sent for job work.
• Treating multiple job workers in a supply chain as a single entry, instead of tracking each leg of movement separately with its own challan reference.
• Overlooking capital goods sent for job work, since businesses often remember to track raw materials and inputs but forget that machinery or tools sent out for repair or calibration may also need reporting.

Frequently Asked Questions

Do I need to file ITC-04 even if the job worker is unregistered?

Generally yes, ITC-04 requires reporting of goods sent for job work regardless of whether the job worker is registered under GST, though the details captured for an unregistered job worker may differ slightly. Verify the current form requirements for your specific case.

What happens if goods sent for job work are not returned in time?

If inputs or capital goods are not received back (or supplied onward) within the prescribed time limit, GST law generally treats this as a deemed supply from the date the goods were originally sent, potentially triggering tax liability and interest. Please verify the current prescribed time limits, as these can differ for inputs versus capital goods.

Is ITC-04 filed monthly, quarterly, or annually?

The frequency generally depends on your aggregate annual turnover, with larger businesses filing more frequently (such as half-yearly) and smaller businesses filing annually in many periods. Verify your current applicable frequency based on turnover.

Do I need to file ITC-04 if I have never sent goods for job work?

If there is no movement of goods to or from a job worker during the period, you generally would not have anything to report, but confirm with a professional whether a nil filing is still expected under the current rules for your registration.

What documents form the basis of ITC-04 reporting?

The delivery challan issued at the time of dispatch to the job worker is the primary document, along with receipt records when goods come back, and any further challans if goods move between multiple job workers.

Can capital goods sent for job work also be reported in ITC-04?

Yes, both inputs and capital goods sent for job work are reportable, though the permissible time limit for receiving them back can differ between the two categories. Verify current timelines with your CA.

What if goods are sold directly from the job worker's premises without returning to me first?

This is permitted under GST law in many cases, but it must still be reported appropriately in ITC-04 as a supply made from the job worker's location, along with the relevant GST treatment on that sale.

Is there a way to avoid deemed supply liability if goods are delayed at the job worker's end?

Practical options may include extending timelines through appropriate documentation or accounting for the deemed supply proactively, but this depends heavily on facts and current legal provisions. It is best to review any ageing job work balances with a professional well before the time limit lapses.

Does ITC-04 apply to businesses outside manufacturing, such as those getting packaging or labelling done externally?

Yes, job work is defined broadly under GST law to cover any treatment or process undertaken on goods belonging to another registered person, so businesses sending goods out for packaging, labelling, printing, or similar processing may also fall within ITC-04 reporting requirements. Verify applicability based on your specific arrangement with a professional.

Not sure if your delivery challans and job work ageing are compliant, or when your next ITC-04 filing is actually due? Legal Suvidha offers a free compliance check to review your job work records before you file.

Why Founders Choose Legal Suvidha

For 14 years we have taken founders end-to-end — from choosing the right structure and incorporating, to first-year compliance, funding readiness, and ongoing ROC/GST/tax filings — so you never have to switch providers as you grow.

• One team for the whole journey — start, launch, post-launch and every annual filing after.
• Fixed, all-inclusive pricing — professional plus government fees itemised, no hidden charges.
• A dedicated CA/CS who owns your case and does not disappear after payment.
• 6,000+ founders served, 4.9/5 rating, DPIIT-recognised, 100% online.

Talk to a Legal Suvidha expert today for a free consultation and an exact, transparent quote on WhatsApp (8130645164).