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ITC-04 Filing Services in India – N D Savla & Associates
Job-Work Return

ITC-04 Filing Services in India
Job-Work Goods Movement Reporting

Challan tracking, quantity reconciliation, one-year and three-year time-limit monitoring, input tax credit protection, and accurate filing on the GST portal under Section 143 of the CGST Act 2017 — delivered by qualified Chartered Accountants, on the correct half-yearly or annual cycle.

Part of our GST & Indirect Tax practice: GST Return Filing ITC Review E-Way Bill Indirect Tax Services

Overview

What Is ITC-04?

ITC-04 is the GST return through which a principal manufacturer reports the inputs and capital goods sent to a job worker, received back, moved between job workers, or supplied directly from a job worker's premises. It is the record through which the GST department can track goods on which input tax credit has already been claimed — the bridge between the credit claimed on raw materials and the physical movement of those goods. It flows from Section 143 of the CGST Act 2017, which governs job work, read with Rule 45 of the CGST Rules 2017, and is filed on the common GST portal half-yearly or annually depending on turnover.

Job work is common in manufacturing, and the transactions are simple to carry out. Tracking them correctly for GST is where most businesses struggle — and many do not realise this until a notice asks for stock movement details from months earlier. Under the job-work scheme, the responsibility for the goods and the input tax credit on them stays with the principal, so it is the principal who files ITC-04, not the job worker. Our practice focuses on documentation-led filing rather than last-minute reconstruction.

ITC-04 reports a defined set of movements — inputs and capital goods sent to a job worker (other than moulds, dies, jigs, fixtures, and tools), goods received back, goods moved from one job worker to another, and goods supplied directly from the job worker's premises — together with the delivery challan number and date, the description and quantity of goods, the value declared on the challan, the nature of the job work, and any loss or wastage. At N D Savla & Associates, our qualified Chartered Accountants deliver accurate ITC-04 filing, covering challan tracking, reconciliation, time-limit monitoring, and correct submission.

Furthermore, ITC-04 connects with the wider GST return filing cycle, input tax credit review, and the indirect tax framework as a whole, so a manufacturer's job-work compliance stays clean and defensible.

Who Must File

Common ITC-04 Filing Scenarios

ITC-04 must be filed by every principal that sends inputs or capital goods for job work — so identifying whether the obligation applies, and on which cycle, is the first step for any manufacturer. Our practice covers every realistic job-work profile:

Inputs Sent for Processing

Manufacturers sending raw materials or inputs to a job worker for processing and receiving them back — the core job-work flow ITC-04 reports.

Semi-Finished Goods Out

Businesses sending semi-finished goods out for a specific process such as machining or finishing, and receiving the processed goods back.

Job-Worker-to-Job-Worker Chain

Principals whose goods move directly from one job worker to another in a multi-stage process — every leg of the chain has to appear on the return.

Supply From Job Worker's Premises

Principals supplying finished goods directly from the job worker's place of business, which must still be captured in ITC-04.

Half-Yearly or Annual Filer

Businesses above the five-crore threshold filing half-yearly, and those up to it filing annually — including any never filed earlier and now regularising.

Notice or Capital-Goods Tracking

Manufacturers facing a notice for proof of job-work stock movement, or with capital goods at a job worker that must be tracked over three years.

Our Services

Our Step-by-Step ITC-04 Filing Process

Our team follows a structured eight-step methodology for every ITC-04 engagement — keeping the job-work flow, challan data, reconciliation, and filing aligned from mapping to audit backup.

01

Mapping the Job-Work Flow and Documentation

First, we understand how goods move between the principal's factory, the warehouse, and the job workers, and how the documentation is maintained. We also confirm the correct filing frequency — half-yearly above five crore rupees turnover, annually up to it. The return is built on a clear picture of the process.
CGST Act 2017 – Section 143, Rule 45
02

Collecting the Delivery Challans and Stock Records

Next, we collect the delivery challans, the job-work registers, and the related stock records for the period. Because goods sent for job work move on a delivery challan rather than a tax invoice, these challans are the primary documents behind every entry, so the return is built on complete source records.
03

Reconciling Quantities and Job-Work Registers

Then, we reconcile the quantities sent, received, and pending against the challans and registers, accounting for any process loss or wastage. Gaps and mismatches are identified before the return is prepared, so ITC-04 ties to the actual movement and to the stock records.
04

Tracking the One-Year and Three-Year Time Limits

Next, we track the one-year limit for inputs and the three-year limit for capital goods against each challan, classifying moulds, dies, jigs, fixtures, and tools correctly since the three-year limit does not apply to them. Any goods nearing or past the limit are flagged early, before they become a deemed supply.
05

Preparing the ITC-04 Return

Then, we prepare the ITC-04 return in the correct GST format, with the goods sent, received, and moved between job workers, and goods supplied from a job worker's premises. The return is complete and consistent before submission.
06

Reviewing Input Tax Credit Exposure

Next, we review whether any input tax credit exposure exists due to missing, delayed, or unreturned goods. The principal sees the risk position clearly before filing, rather than discovering a reversal risk during an audit.
ITC Protection
07

Filing ITC-04 on the GST Portal

Then, we file ITC-04 on the GST portal and resolve any portal validation errors. The return is submitted accurately and on the correct half-yearly or annual cycle, so it is never missed or filed on the wrong frequency.
08

Maintaining Backup Documentation for Audit

Finally, we organise the challans, reconciliations, and registers as backup so the filing can be defended. The principal is ready for any GST audit or assessment that follows, with stock movement that can be proved on demand.

Broader Practice

Our Broader GST and Indirect Tax Services

Job-work reporting is one part of the full compliance cycle — our wider GST and indirect-tax practice covers returns, reconciliation, movement of goods, and assessment:

GST Return Filing ServicesMonthly and quarterly return filing alongside ITC-04.
GSTR-2B Reconciliation & ITC ReviewInput tax credit matching that protects job-work credit.
GST E-Way BillMovement-of-goods compliance supporting the challan.
GST InvoicingCompliant tax invoice and delivery challan setup.
GSTR-9 Annual ReturnAnnual return compliance for regular taxpayers.
GSTR-10 Final ReturnFinal return on cancellation of registration.
GST Audit & Assessment SupportSupport during audit and assessment of job-work records.
GST NoticeHandling notices for stock movement proof.

Frequently Asked Questions

Common Questions on ITC-04

What is ITC-04?
ITC-04 is the GST return through which a principal reports the inputs and capital goods sent to a job worker and received back, along with goods moved between job workers or supplied from a job worker's premises. It flows from Section 143 of the CGST Act 2017 read with Rule 45 of the CGST Rules 2017, and it lets the department track goods on which input tax credit has already been claimed. Our GST return filing page covers the wider return cycle.
Who has to file ITC-04?
ITC-04 must be filed by the principal that sends inputs or capital goods for job work under the GST job-work scheme. It is the principal, not the job worker, who furnishes this return, because the responsibility for the goods and the input tax credit on them stays with the principal. It is most relevant to manufacturers in industries such as textiles, engineering, pharmaceuticals, and auto components. Our GST consultancy services page covers end-to-end GST support.
How often is ITC-04 filed?
The frequency of ITC-04 filing depends on the turnover of the principal. A principal whose aggregate annual turnover is above five crore rupees files ITC-04 half-yearly, while a principal whose aggregate annual turnover is up to five crore rupees files ITC-04 annually. Confirming the correct cycle is the first step in any engagement. Our GST return filing by accountant page covers ongoing return support.
What is the time limit for goods sent for job work?
Inputs sent for job work must be received back by the principal within one year, and capital goods within three years, of being sent out, measured from the date on the delivery challan. The three-year limit does not apply to moulds, dies, jigs, fixtures, and tools. If goods are not received back within the limit, they are treated as a supply made on the day they were originally sent. Our GST health check page covers a full compliance review.
Is a delivery challan required for job work?
Yes. Goods sent for job work move on a delivery challan rather than a tax invoice, because the movement is not a supply. The delivery challan must carry the required particulars of the goods and the movement, and it is the primary document behind every entry in ITC-04. It also supports the goods on the e-way bill where one is required. Our GST e-way bill page covers movement-of-goods compliance.
Can input tax credit be denied if ITC-04 is not filed?
Weak job-work compliance can put the input tax credit at risk. If ITC-04 is not filed and the movement of goods cannot be justified with proper challans and records, the principal can face a reversal of the input tax credit claimed on those goods, especially where stock movement cannot be proved during an audit or assessment. Accurate ITC-04 filing protects that credit. Our GSTR-2B reconciliation page covers input tax credit matching.
What happens if goods are not received back from the job worker in time?
If inputs or capital goods are not received back within the prescribed period — one year for inputs and three years for capital goods — the goods are treated as having been supplied to the job worker on the day they were originally sent out. A tax liability can then arise on that deemed supply. Therefore, tracking the return timelines is essential. Our GST audit and assessment support page covers support during audit and assessment.

Need to File ITC-04? Talk to Our GST Team.

End-to-end ITC-04 filing for manufacturers and businesses that send inputs and capital goods for job work — job-work flow mapping, challan and stock reconciliation, one-year and three-year time-limit tracking, input tax credit exposure review, and filing on the correct half-yearly or annual cycle. ITC-04 protects the input tax credit on your job-work goods, so accurate, documentation-led filing is essential.

Get in Touch
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