Form GST ITC-04: reporting goods sent to and received from job workers

What is job work under GST?

Job work means processing or working on goods belonging to another registered person. A garment brand sending fabric to a stitching unit, or an auto-parts maker sending castings for machining, is a principal sending goods to a job worker. Section 143 lets the principal send inputs and capital goods without paying tax, under a delivery challan, and keep the input tax credit.

In return, the law requires the principal to track those goods and report them in ITC-04. The form shows what went out, what came back, what was sent onward directly from the job worker's premises, and what was supplied from there to customers.

Due dates and frequency

Since October 2021, the frequency of ITC-04 depends on aggregate turnover in the previous financial year, as notified by CBIC. For 2026-27, the periods and due dates work out as follows.

Time limits for bringing goods back

Inputs sent to a job worker must be received back, or supplied from the job worker's premises, within one year of being sent. Capital goods have three years. Moulds, dies, jigs, fixtures and tools are outside these limits. The Commissioner can extend the limits on sufficient cause, by up to one year for inputs and two years for capital goods.

If goods are not returned within the limit, they are deemed to have been supplied by the principal to the job worker on the day they were originally sent. The principal must then pay tax with interest, which is why accurate ITC-04 tracking matters.

What data do you need?

ITC-04 is built almost entirely from delivery challans, so a challan register that captures the right fields saves most of the work at the due date. Keep these details for every movement during the period.

• GSTIN or state of the job worker and type of goods (inputs or capital goods)
• Challan number, date, description, UQC, quantity and taxable value of goods sent
• Goods received back, with original challan reference and quantity
• Goods sent from one job worker to another, or supplied directly from the job worker's premises
• Losses and wastage, and the treatment of scrap generated at the job worker

Common errors and consequences

Common mistakes include not linking goods received back to the original challan, ignoring partial returns, missing goods sent from one job worker to another, and filing a single annual return when turnover exceeds ₹5 crore. Errors make goods appear outstanding beyond the time limit, which can trigger a demand for tax on deemed supply.

No specific late fee is notified for ITC-04, but non-filing can attract the general penalty under section 125 of up to ₹25,000, and it weakens your position if an officer questions credit on goods lying with job workers. Refogo's partner professionals can prepare ITC-04 from your challan records for a fixed fee.

Step by step

1. 1Maintain a challan register

   Record every delivery challan for goods sent to and received from job workers.

2. 2Reconcile with job workers

   Confirm quantities, wastage and goods supplied from their premises.

3. 3Open ITC-04 on the portal

   Go to Services, Returns, ITC Forms and select ITC-04 for the period.

4. 4Enter or upload data

   Fill tables for goods sent and received, or upload a JSON from the offline tool.

5. 5File with DSC or EVC

   Submit and file before the due date and keep the acknowledgement.