What is GST ITC-04?
ITC – 04 under GST is a form which has to be furnished by registered manufacturers, showing the details of inputs or capital goods dispatched or received from a job worker in a particular quarter.

What are the details to be furnished in ITC -04 under GST?
The details of the following 4 types of transactions need to be furnished in Form ITC-04 under GST:

Inputs or Capital goods dispatched to job workers in the quarter

Inputs or Capital goods received from job workers in the quarter

Inputs or Capital goods sent from one job worker to another job worker in the quarter

Inputs or Capital goods supplied from the premises of job workers in the quarter
What is the GST ITC-04 due date?
The regular deadline for GST ITC-04 filing will always be the 25th of the month succeeding a quarter.

How to file GST ITC-04 in the GST Portal?
The first step is to download the GST ITC-04 offline tool, from the GST Portal. One can do this by visiting the GST Portal, and then clicking Downloads > Offline Tools > ITC-04 Offline Tool

The offline tool will be downloaded in the computer as a .zip file

Once the GST ITC-04 download is complete, one needs to extract the contents of the .zip file, which is basically an excel file, comprising 3 worksheets. The details need to be entered into this excel file, and for this, internet connection is not required

Worksheet 1 – Import Export File– is used to import the data file already uploaded in the GST portal or the error file generated after upload of data in the portal. This can be used to modify the details uploaded in the GST portal before filing of Form ITC-04 under GST

Worksheet 2 – Mfg to JW– is used to enter the details of inputs or capital goods sent to job worker

Worksheet 3 – JW to Mfg – is used to enter the details of inputs or capital goods received back from job workers or sent from one job worker to another or supplied from the job worker’s premises

Once the details are entered in a sheet, one needs to click "Validate Sheet"

If any errors are found, the same will be shown along with the details in the column "Errors". One can make the required corrections and validate the data again. Each row entered in the sheet should show "This row is validated" in the column "Errors"

After successful validation, one should click "Generate file to upload", upon which the file will be generated in JSON format. That file should be saved in the computer

Post this, one should upload the JSON file, to the GST portal. One can do this by visiting the GST portal, using one's username and password, and clicking Services > Returns > ITC Forms

GST ITC-04 should be selected, and "Prepare Offline" should be clicked
The financial Year and return filing period should be selected, followed by clicking "Search"
Next, one should click "Choose File" and select the JSON file from the computer to be uploaded, post which it will be validated by the portal

If any errors are found, an error file will be generated, which should be downloaded from the portal. As discussed above, one should then, open the ITC-04 offline tool and in the "Import Export file" sheet, click "Import data from File" to import the error file and make the necessary modifications

Once, all these steps are complete, one is ready to file GST ITC-04. To do this, once should click "Initiate Filing", select the financial year and return filing period, and then click "File Return". One can authenticate the file using DSC (Digital Signature Certificate) or EVC (Electronic Verification Code) and then submit the return.

 

Input Tax Credit on job work

The principal manufacturer will be allowed to take credit of tax paid on purchase of goods send on job work.

However, there are certain conditions. Let us go through them in detail.

 

Place of business

Input Credit on Job Work 1

ITC will be allowed in both the cases

Effective date

Input Credit on Job Work 2

Is there a time limit for the principal manufacturer to receive back the goods?

Yes. The principal manufacturer must receive the goods back within the following period:

  1. Capital Goods- 3 years from effective date
  2. Input Goods- 1 year from effective date

Please refer our article on impact of GST on job work for more details.

What happens if the goods are not received within the specified time?

In case goods are not received within the period as mentioned above, such goods will be deemed as supply from effective date. The principal manufacturer will have to pay tax will on such deemed supply.

The challan issued will be treated as an invoice for such supply.

Can the principal directly sell from the job worker’s place?

The principal manufacturer can supply the goods from the place of business of a job worker only if he (the principal) declares such place of business as his additional place of business.

This rule does not apply for the following-

(i) The job worker is registered

(ii) The principal supplies goods which are specifically notified by the Commissioner to be allowed to sell directly from job worker’s place.

Various machinery sent to the job worker to carry out the job work

The time limits will not apply to items like moulds and dies, jigs and fixtures, or tools sent out to a job worker for carrying out the job work.

 

Summary of conditions for claiming ITC on goods sent for job work

A.Goods can be sent to job worker:

  1. From principal’s place of business
  2. Directly from the place of supply of the supplier of such goods

ITC will be allowed in both the cases.

B. Effective date for goods send depends on place of business:

  1. Sent from principal’s place of business- Date of goods sent out
  2. Send directly from the place of supply of the supplier of such goods- Date of receipt by job worker

C. The goods send must be received back by the principal manufacture within the following period:

  1. Capital Goods- 3 years
  2. Input Goods- 1 year

D. In case goods are not received within the period mentioned above, such goods will be treated as supply from the effective date and tax will be payable.

For transitional provisions, please refer our article on Impact of GST on job work.

Form ITC-04

FORM GST ITC-04 must be submitted by the principal every quarter. He must include the details of challans in respect of the following-

  • Goods dispatched to a job worker or
  • Received from a job worker or
  • Sent from one job worker to another

Due date of FORM GST ITC-04

ITC-04 is a quarterly form. It must be furnished on or before 25th day of the month succeeding the quarter.

For example, for Oct-Dec quarter, the due date is 25th Jan.

Details to be furnished in ITC-04

There are 2 parts-

  • Goods sent to job worker
  • Goods received back from the job worker

 

Details of inputs/capital goods sent for job-work

Various details must be mentioned such as GSTIN, challan number, tax amount etc. All details will be available from the challans.

Input Credit on Job Work 3

 

Goods received back from job worker or sent out from business place of job-work

The details of goods received back will be mentioned here. The goods may be received by the principal or sent to another job worker directly from the first job worker’s place of business.

 

All details of original challans and new challans must be mentioned.

Input Credit on Job Work 4

 

Guide to GST Portal for filing ITC-04

Here’s a step-by-step guide on filing on the GST portal.

Step 1

Login to the GST Portal

 

Input Credit on Job Work 5

 

Step 2

Go the Services>>Returns>>ITC Forms

Input Credit on Job Work 6

Step 3

Go to “Prepare Offline”

Upload invoices.

Input Credit on Job Work 7

 

Step 4

Once invoices are uploaded then click ‘Initiate Filing’.

Input Credit on Job Work 8

Step 5

Select tax period.

Input Credit on Job Work 9

Step 6

Check taxable amount and other details.

Input Credit on Job Work 10

Step 7

Finally, file the return with DSC or EVC as applicable.

Input Credit on Job Work 11

 

 

A considerable amount of time has been provided by the government to the job workers for returning goods to the principal holder. GST will help in maintaining transparency in the details of input credit on goods sent for job work.

For more information on GST impact on job work and other input tax credit provisions please visit our blog.

Be GST ready through ClearTax GST Software, an easy user-friendly versatile software which will help you to be GST compliant.

FAQs

Q. 1 What is Form GST ITC-04 Offline Utility?

Ans. Form GST ITC-04 Offline utility is an Excel-based tool to help taxpayers to prepare their Form GST ITC-04 declaration offline. Taxpayers may use the offline utility to furnish details of goods/capital goods sent to job worker and received back etc. in every Quarter.

Q. 2 Who needs to file GST ITC-04 Offline Utility?

Ans. A registered person (Principal) is required to file a declaration in ‘Form GST ITC–04’ every quarter, within the prescribed time, if the principal is sending any inputs or capital goods to a job worker (both registered and unregistered) without payment of tax and receives it back or sends it out to another job worker or supplies from premises of job worker to customer directly.

Q. 3 What are the features of Form GST ITC-04 Offline Utility?

Ans. The Key Features of Form GST ITC-04 Offline Utility are given below:

Details of Table 4, 5A, 5B and 5C can be prepared offline with no connection to Internet.
Most of the data entry and business validations are inbuilt in the offline utility reducing chances of errors upon upload to GST Portal.
Q. 4 Can I file Form ITC-04 using Offline Utility?

Ans. No. Filing can take place only online on the GST Portal. Using Offline Utility, you will be able to prepare details of Table 4, 5A, 5B and 5C of Form GST ITC-04. Once, you have uploaded the prepared details on the GST Portal, you must file return on the portal with your Login credentials.

Q. 5 What details in Form GST ITC-04 can be entered by taxpayer using the Offline Utility?

Ans. Details for following Tables of Form GST ITC-04 can be entered by taxpayer using the offline Tool:

Table 4: Details of inputs/capital goods sent for job-work
Table 5A: Details of inputs/ capital goods received back from job worker to whom such goods were sent for job work; and losses and wastes
Table 5B: Details of inputs / capital goods received back from job worker other than the job worker to whom such goods were originally sent for job work; and losses and wastes
Table 5C: Details of inputs/ Capital goods sent to job worker and subsequently supplied from premises of job worker; and losses and wastes
Download Form GST ITC-04 Offline Utility


Q. 6 From where can I download and use the Form GST ITC-04 Offline Utility in my system?

Ans. To download and open the Form GST ITC-04 Offline Utility in your system from the GST Portal, perform following steps:

1. Access the GST Portal:gst.gov.in.

2. Go to Downloads > Offline Tools > ITC-04 Offline Tool option and click on it.

3. Unzip the downloaded Zip file which contain ITC_04_Offline.xls excel sheet.

4. Open the ITC_04_Offline.xls excel sheet by double clicking on it.

5. Read the ‘Instruction_sheet’ instructions on excel sheet and then fill the worksheet accordingly.

Note: Downloading the ITC-04 Offline utility is a one-time activity. However, the utility may get updated in future. So, always use the latest version available on the GST Portal.

Q. 7 Do I need to login to GST Portal to download Form GST ITC-04 Offline Utility?

Ans. No. You can download the Form GST ITC-04 Offline Utility under ‘Downloads’ section, without logging in to the GST Portal.

Q. 8 What are the basic system requirements/configurations required to use Form GST ITC-04 Offline Tool?

Ans. The offline functions work best on Windows 7 and above and MS EXCEL 2007 and above.

Q. 9 Is Offline utility mobile compatible?

Ans. As of now, Form GST ITC-04 Offline utility cannot be used on mobile. It can only be used on desktop/laptops.

Q. 10 I am getting error message as “Compilation error in module due to incompatibility with the version, platform or architecture” while opening the offline tool. What to do now?

Ans. While Opening the Excel sheet, if you see error message box like: “Compilation error in module due to incompatibility with the version, platform or architecture” please ignore this message and see if excel sheet works or not. In case it does not work, you need to use latest MS Office for successful export of your data.

Worksheet Tabs in Form GST ITC-04 Offline Utility

Q. 11 How many worksheet-tabs are there in Form GST ITC-04 Offline Utility?

Ans. There are 6 worksheet-tabs in ITC-04 Offline Utility. These are:

1. Instruction_Sheet

2. Home

3. Table 4

4. Table 5A

5. Table 5B

6. Table 5C

Q. 12 What is the use of “Instruction_Sheet” worksheet-tab?

Ans. The “Instruction_Sheet” sheet contains Introduction and help instructions for you to read and use them to easily fill data in Form GST ITC-04 Offline Utility.

Q. 13 What is “Home” button?

Ans. On click of ‘Home’, offline utility navigates to the Home sheet.

Q. 14 What is “Validate Sheet” button?

Ans. After entering the data in each sheet, you must click on ‘Validate Sheet’ button to validate the records. If there are any errors, then those errors will be displayed in ‘Sheet validation errors’ column. You must correct these errors before you move to next sheet or generate JSON file to upload.

Q. 15 What is the use of “Home” worksheet-tab?

Ans. The Home sheet is the main page of the utility. It is used to perform following 4 functions:

1. Enter mandatory details – GSTIN of Principal, SEZ Unit/Developer, Financial Year and Return Period – Without entering these details, you will not be able to validate the data which you entered in various worksheets and also you will not be able to generate the JSON file.

2. Generate JSON file, for upload of Form GST ITC-04 return details, prepared offline on GST portal, using Generate JSON File to upload

3. Import and open Error JSON File downloaded from GST portal using Open Downloaded ITC-04 JSON/Error File

Q. 16 What is the use of ‘Table 4’ worksheet-tab?

Ans. The Table 4 sheet is used to perform following 3 functions:

1. Enter details of inputs/capital goods sent for job-work.

2. Validate the entered details using the Validate Sheet

3. Navigate to the Home page by clicking on the Home button or navigate to the next sheet.

Q. 17 What is the use of ‘Table 5A’ worksheet-tab?

Ans. The Table 5A sheet is used to perform following 3 functions:

1. Enter details of inputs/ capital goods received back from job worker to whom such goods were sent for job work; and losses and wastes.

2. Validate the entered details using the Validate Sheet

3. Navigate to the Home page by clicking on the Home button or navigate to the next sheet

Q. 18 What is the use of ‘Table 5B’ worksheet-tab?

Ans. The Table 5B sheet is used to perform following 3 functions:

1. Enter details of inputs / capital goods received back from job worker other than the job worker to whom such goods were originally sent for job work; and losses and wastes.

2. Validate the entered details using the Validate Sheet

3. Navigate to the Home page by clicking on the Home button or navigate to the next sheet

Q. 19 What is the use of ‘Table 5C’ worksheet-tab?

Ans. The Table 5C sheet is used to perform following 3 functions:

1. Enter details of inputs/ Capital goods sent to job worker and subsequently supplied from premises of job worker; and losses and wastes.

2. Validate the entered details using the Validate Sheet

3. Navigate to the Home page by clicking on the Home button or navigate to the next sheet

Entering Details in Offline Utility

Q. 20 How can I prepare details in Offline Utility?

Ans. For preparing details in Offline Utility, download the utility from GST Portal and fill up required details, create JSON file and then upload it on the GST Portal.

Q. 21 Can the offline utility populate name of the taxpayer based on GSTIN in “Home” Sheet?

Ans. No, the offline utility cannot populate name of the taxpayer based on GSTIN, as details will not be there to fetch name of the taxpayer in Excel/offline utility. However, it can validate structure of GSTIN when GSTIN is entered in “Home” sheet of Offline utility.

Q. 22 Can I enter negative or decimal amounts in the offline utility?

Ans. You cannot enter any negative values in the offline utility. However, you can enter values upto two decimal point.

Q. 23 Can the offline utility validate all details entered in it?

Ans. No, the offline utility will not be able to validate all the details as it would have no connection with GST portal at the time of data entry. Only limited validations would be available in the offline utility tool, namely: GSTIN structure, type of tax etc.

Q. 24 After clicking “Validate Sheet” button, I can see cells highlighted in red and “Sheet Validation” column only shows “Error in row”. How I can know details about the error?

Ans. Point your mouse-cursor on each of the red-highlighted cells to read the error description of each cell. A yellow description box will appear. Correct the errors as mentioned in the description box. Alternatively, click Review > Show All Comments link in the ribbon-tab of the excel to view all the comments together.

Q. 25 When will I be able to validate all details entered in the offline utility?

Ans. Most of the validations are made available in the offline tool itself on click of “Validate Sheet” button. The validations that have dependency of online connectivity like GSTIN validation would be done at the time of upload of JSON File created using offline tool.

Upload the Generated JSON File

Q. 26 Do I need to login to GST Portal to upload the generated JSON file using Form GST ITC-04 Offline Utility?

Ans. Yes. You must login in to the GST Portal to upload the generated JSON file using Form GST ITC-04 Offline Utility.

Q. 27 I am uploading Form GST ITC-04 JSON File again, after making changes. What will happen to details of the previous upload?

Ans. If some details do not exist from previous upload, all new details will be added as new entries. In case, some details exist from previous upload, it will be updated with latest uploaded details.

Q. 28 Can I generate the JSON file from the offline utility without entering any details in any sheet?

Ans. No. You can’t generate nil JSON file.

Download Error JSON File

Q. 29 What will the error report contain?

Ans. Error Report will contain only those entries that failed validation checks on the GST portal. The successfully-validated entries can be previewed online.

Q. 30 Does the downloaded Error JSON File contain all the entries I have uploaded on the GST Portal?

Ans. No, the downloaded Error JSON File contains only those entries, of that specific table that has failed validation during upload on the GST portal.

Q. 31 I’ve uploaded Form GST ITC-04 JSON File and it was processed without error. Do I need to download the generated file?

Ans. No, it is not necessary for you to download the ITC-04 JSON File processed without error. You need to download it only if you want to view or update the details added previously.