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Annual Filing Required — Due by 25th April
Non-filing can lead to ITC reversal and penalties. Track all goods sent on job work basis.
Declaration of Goods Sent to Job Worker Under Section 143, CGST Act
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If your business sends raw materials, semi-finished goods, or machinery to another person for processing — that's called job work under GST. Think of it like this: you buy steel (and claim ITC on it), then send that steel to a fabricator who cuts and welds it into parts, and they send it back. The steel never left your books — you just got it processed elsewhere.
The government needs to track this because you claimed ITC on those goods. If they're sitting at a job worker's place indefinitely, there's a risk that ITC was claimed on goods that were actually sold or diverted. ITC-04 is the tracking mechanism — it's your declaration saying "here's what I sent out, here's what came back, and here's what's still with the job worker."
Under Section 143 of the CGST Act, the principal (you, the person who sends goods) is responsible for filing ITC-04. The job worker doesn't file this — it's entirely your responsibility. Even if your job worker is unregistered under GST, you still need to file ITC-04.
Any registered person who sends goods for job work must file ITC-04. This includes:
Manufacturers
If you send raw materials or semi-finished goods to another factory for any processing — cutting, welding, polishing, dyeing, stitching, mixing, assembling, etc.
Traders sending goods for labeling/packing
Even if you're just sending finished goods for labeling, packaging, or testing — it counts as job work. The goods are with someone else and ITC was claimed.
Businesses sending capital goods for repair
If you send your machinery, moulds, dies, jigs, or fixtures to another party for repair, maintenance, or refurbishment, that's also job work and must be reported in ITC-04.
Anyone using a contract manufacturer
If you provide raw materials to a contract manufacturer who makes finished products for you, each batch of materials sent and products received must be tracked.
Exception: If you send goods directly from your supplier to the job worker (without them passing through your premises), you still need to report them in ITC-04 once received back from the job worker.
| Type of Goods | Return Deadline | Consequence of Missing |
|---|---|---|
| Inputs & semi-finished goods | 3 years from date of dispatch | Deemed supply — reverse ITC + 18% interest + tax |
| Capital goods (machinery, moulds) | 3 years from date of dispatch | Deemed supply — reverse ITC + 18% interest + tax |
| Moulds, dies, jigs, fixtures, tools | 3 years from date of dispatch | Deemed supply — reverse ITC + 18% interest + tax |
| Goods supplied directly from job worker | No specific time limit (but ITC-04 filing required) | Must report the supply in returns + ITC-04 |
The 3-year clock starts from the date you dispatched the goods to the job worker. If goods aren't returned within the deadline, the law treats it as if you supplied those goods to the job worker on the date they were sent. That means you owe GST on the transaction value, plus you must reverse the ITC you claimed on those goods, plus 18% interest from the date of original ITC claim.
Login → Returns → ITC Forms → ITC-04
Navigate to the Returns section on the GST portal, select ITC Forms, and click on ITC-04. Select the financial year for which you're filing (e.g., April 2024 to March 2025).
Table 4 — Goods Sent to Job Worker
Enter details of all goods dispatched to job workers during the period: challan number, challan date, job worker's GSTIN (or name/address if unregistered), description of goods, HSN code, quantity, taxable value, and applicable GST rate. One row per challan/consignment.
Table 5A — Goods Received Back from Job Worker
Report goods that were returned to your premises during the period. Reference the original challan number, return challan details, quantity received back. The quantity received back should match or be less than the quantity sent.
Table 5B — Goods Supplied Directly from Job Worker
If you supplied finished goods directly from the job worker's premises to your customer (without bringing them back to your place), report those here. This is common in make-to-order manufacturing where goods go directly to the buyer.
Table 6 — Goods Still With Job Worker
This is the closing balance — goods that were sent but not yet returned as of the end of the period. This is auto-computed based on Tables 4, 5A, and 5B. Verify the numbers match your internal records.
Preview, Verify, and Submit
Review all entries carefully. Cross-check against your delivery challans and job work register. Submit with DSC or EVC. Once submitted, ITC-04 cannot be revised — so get it right the first time.
❌ Not tracking delivery challans
✅ Maintain a proper job work register (physical or digital) with challan numbers, dates, quantities, and return status. This is the source data for ITC-04.
❌ Mixing up HSN codes between sent and received goods
✅ If you send raw material (HSN 7204) and receive back processed goods (HSN 7219), the HSN may change. Report the correct HSN for each stage.
❌ Missing unregistered job workers
✅ Even if your job worker doesn't have GST registration, you must report goods sent to them. Enter their name and address instead of GSTIN.
❌ Not reporting goods sent through intermediaries
✅ If goods go from Job Worker A to Job Worker B (for multi-stage processing), each movement needs to be tracked. The final return is still to your premises (or your customer).
❌ Forgetting capital goods sent for repair
✅ Machinery sent for repair/overhaul counts as job work. If your production line equipment is at a service center, it should be in ITC-04.
❌ Filing with wrong period
✅ ITC-04 is annual now. Make sure you select the correct financial year. Some businesses still try to file quarterly (the old frequency) and end up duplicating data.
When sending goods on job work, you don't issue a tax invoice — you issue a delivery challan (Rule 55 of CGST Rules). Here's what the challan must contain:
Keep delivery challans for at least 72 months (6 years) from the due date of filing the annual return for that year. These are your primary evidence if the department questions your ITC-04 declarations.
⚠️ ITC reversal demand
The department can demand reversal of ITC claimed on goods whose job work movement isn't tracked through ITC-04. Without the declaration, you can't prove the goods are still in the job work cycle.
⚠️ Section 73/74 proceedings
Non-filing of ITC-04 combined with untracked goods can trigger show cause notice under Section 73 (or Section 74 if fraud is suspected) for wrongful ITC claim.
⚠️ Penalty under Section 122
General non-compliance penalty of ₹10,000 or the tax amount involved — whichever is higher. For systematic non-filing, the penalty can be applied for each period.
⚠️ Deemed supply on time-barred goods
Goods not returned within 3 years are automatically treated as supply. You owe GST on the value + must reverse ITC + 18% interest. This can be a massive unexpected tax liability.
⚠️ Scrutiny trigger
Non-filing of ITC-04 flags your GSTIN for scrutiny. The officer may issue ASMT-10 scrutiny notice focusing on your job work transactions and ITC claims.
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Disclaimer: This guide is for educational and informational purposes only. Job work provisions under GST are complex and depend on the nature of goods, type of processing, and specific circumstances. Time limits and filing frequencies may change through CGST Rule amendments. Always consult a qualified GST practitioner for compliance advice.
Last updated: March 2026 | Based on CGST Act 2017 Section 143 & CGST Rules 45, 55