Whether Jobworker is required to file Form-ITC-04 for goods sent to anlother jobworker for job work

[Gaurav Kathuria]

In a case, the Principal sends goods for Job work to Jobworker-A

Then the Jobworker-A sends the goods for further job work to job worker-B who send back the goods after job work to Jobworker-A.

In this scenerio, whether the Job worker-A is required to file Form-ITC-04 for the transaction between jobworker-A and Jobworker-B.

All the three parties are regsitered under GST Laws.

Kindly guide. Thank you in Advance

[Sadanand Bulbule]

In terms of Rule 45 [3] of the CGST Rules, filing of ITC-04 is mandatory, irrespective of number of change of hands in the chain of such transactions. Invocation of Section 125 depends upon the prudence of the AO.

[YAGAY and SUN]

Rule 45(3) of the CGST Rules pertains to the filing of Form ITC-04 for job work. Specifically, Rule 45(3) provides the requirement for the principal (the person who is sending goods for job work) to file Form ITC-04 when the goods are sent to a job worker and, in certain cases, when they are sent between different job workers for further processing.

Here’s what Rule 45(3) states in detail:

Rule 45(3) - Form ITC-04 Filing Requirement

• Goods sent to job worker: When the principal sends goods to a job worker for processing, the principal is required to report this in Form ITC-04.
• Further processing by another job worker: If the goods sent for job work are further sent by the first job worker (Jobworker-A) to another job worker (Jobworker-B) for further processing, the principal (Jobworker-A, in your scenario) is still required to report this transaction in Form ITC-04.
• Time limit for filing: Form ITC-04 must be filed quarterly, with the details of goods sent and returned for job work. The due date for filing is within 15 days after the end of the quarter during which the goods were sent or returned.

Key Points to Remember from Rule 45(3):

1. Responsibility of Principal: The principal (Jobworker-A) is responsible for filing Form ITC-04, even if the goods are further sent to another job worker (Jobworker-B). This is because the principal has to track the movement of goods sent for job work.
2. Goods sent to another job worker: If Jobworker-A sends the goods to Jobworker-B, even though Jobworker-B performs further processing, Jobworker-A must report the dispatch and receipt of the goods in Form ITC-04.
3. Form ITC-04 Contents: The form will contain details of:
   • Goods sent to job workers.
   • Goods sent to another job worker for further job work (if applicable).
   • Goods returned after job work.

Conclusion:

In the scenario you described:

• Jobworker-A must file Form ITC-04 for the transaction involving the goods sent to Jobworker-B for further job work and the return of goods from Jobworker-B back to Jobworker-A.

The purpose is to ensure proper tracking and compliance for the movement of goods under job work arrangements.

[Shilpi Jain]

ITC-04 to be filed by principal. If JW-A is sednig to B as a principal then A needs to file ITC-04.

However, if A is sending to B as per instruction of principal - then A need not file.

[Gaurav Kathuria]

Thank you for your opinion and support.

AI Summary

Form ITC-04 filing obligation continues when goods move between jobworkers; the principal must report such movements.
The obligation to file Form ITC-04 continues regardless of further transfers between job workers: movements of goods for job work must be reported to track goods sent and returned. The filing duty rests with the principal; if a job worker forwards goods while acting as principal they must file, but if they act under the original principal's instruction the original principal remains responsible. Form ITC-04 is used to report such dispatches and returns under job work arrangements.