ITC-04 under GST

[VIGNESH]

Sir. A jewellery shop M/s. XYZ issues gold for ornaments making to Mr.A who undertakes Job Work both by himself and Mr.A also gives to other Karigar for Ornaments Making and Mr.A finally raises a GST bill For Jobwork to M/s.XYZ. Who should File ITC -04 in the above case?

[KASTURI SETHI]

The principal (owner) is required to file ITC-04. The principal is responsible for discharging GST liability on job-worked goods. The goods may be sent from one job-worker to another job worker.

"4.4 Amended Para 3. of C.B.I. & C. Circular No. 88/07/2019-GST, dated 1-2-2019

It may be noted that the responsibility of keeping proper accounts of the inputs and capital goods sent for job work lies with the principal. Moreover, if the time frame specified under section 143 for bringing back or further supplying the inputs/capital goods is not adhered to, the activity of sending the goods for job work shall be deemed to be a supply by the principal on the day when the said inputs/capital goods were sent out by him. Thus, essentially, sending goods for job work is not a supply as such, but it acquires the character of supply only when the inputs/capital goods sent for job work are neither received back by the principal nor supplied further by the principal from the place of business/premises of the job worker within the specified time period (under section 143) of being sent out. It may be noted that the responsibility for sending the goods for job work as well as bringing them back or supplying them has been cast on the principal."

[VIGNESH]

Guruji

so here the Principal(Owner) is the Jewellery shop who issues Gold for ornaments making hence M/s. XYZ has to file ITC-04, Correct Sir?

[KASTURI SETHI]

Yes. You are correct. Sh.Vignesh Ji.

[Ganeshan Kalyani]

M/s. XYZ is the principal so he has to file ITC-04 return. Now, the periodicity of filing ITC-04 has been made to half-yearly.

AI Summary

Principal's GST return obligation: principal must file ITC-04 for job-worked goods, with half yearly filing requirement.
The principal who sends inputs or capital goods for job work must file ITC-04, keep proper accounts, and may send goods between job-workers; failure to bring back or supply the goods within the statutory time frame results in the sending being treated as a supply by the principal. ITC-04 is filed on a half yearly basis.