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

Who files and when

Section 143 of the CGST Act allows a principal to send inputs and capital goods to a job worker without paying tax, and Rule 45(3) requires the principal to report these movements in ITC-04.

• Aggregate turnover above Rs. 5 crore in the previous year: half-yearly, by 25 October for April to September and by 25 April for October to March
• Aggregate turnover up to Rs. 5 crore: annually, by 25 April for the whole financial year
• Only the principal files ITC-04; the job worker does not

What ITC-04 reports

• Inputs and capital goods sent to each job worker, with challan details
• Goods received back from job workers, including waste and scrap
• Goods sent from one job worker to another
• Goods supplied directly from the job worker's premises

Time limits on return of goods

Inputs must be brought back within one year and capital goods within three years of being sent, unless supplied from the job worker's place. If they are not, the goods are treated as supplied by the principal on the day they were originally sent, and tax with interest becomes payable. Moulds, dies, jigs, fixtures and tools are exempt from this time limit. Goods must move under a delivery challan as required by Rule 55.

Common errors

The usual problems are missing challans, mismatches between quantities sent and received, unreported scrap, and goods overstaying the time limit without tax being paid. Officers compare ITC-04 with e-way bills and the job worker's records, so differences lead to deemed supply demands. Maintain a running job work register reconciled each half-year. A professional can set up the register and prepare ITC-04 from it.

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This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.