Query related to Table no. 5A of Form ITC-04

[Anand Nahar]

Please clarify the reporting requirement for Table 5A of the ITC-04 utility. If 50 units of raw materials are sent to a job worker and, after processing, 1 finished product is received back, should Table 5A reflect the quantity of raw materials sent or the quantity of finished goods received from the job worker?

[Raam Srinivasan Swaminathan Kalpathi]

Dear Querist

The inputs alone must be populated. This is purely for reconciliation purposes. GST law only mandates the details of the consumption of the original raw materials and other inputs.

Thanks

[YAGAY and SUN]

Table 5A of Form GST ITC-04 is intended to report the goods received back from the job worker (or received from one job worker by another job worker), and therefore the quantity should be reported based on the goods actually received back, not the quantity originally sent.

Accordingly, if 50 units of raw material are sent to the job worker and, after processing, 1 finished product is returned, Table 5A should reflect the quantity of the finished product received back (i.e., 1 unit) along with the relevant details of the challan under which the goods were originally sent.

The purpose of ITC-04 is to track the movement of goods sent for job work and their subsequent receipt or supply. Therefore, Table 4 captures the details of goods sent to the job worker, whereas Table 5A captures the details of goods received back after processing. The quantity reported in Table 5A should correspond to the nature and quantity of the goods returned by the job worker, even if the quantity differs from the inputs originally sent due to the manufacturing or processing activity undertaken.

However, as a practical matter, the principal should maintain proper records establishing the correlation between the raw materials sent and the finished goods received, including details of input-output ratios, process loss, scrap generation (if any), and job-work records, so that the movement reported in ITC-04 can be reconciled with the books of account and supporting documents.

[Ganeshan Kalyani]

Table 5A will have detail of FG or semi-FG received from Job worker.

[Shilpi Jain]

Qty of RM. Since we are trying to ensure that what was sent has been received back within time limit.

AI Summary

Job work reporting under GST ITC-04: debate over whether Table 5A should show raw materials sent or finished goods returned. Table 5A of Form GST ITC-04 is discussed as a reporting field for goods moved to and returned from job work. The issue is whether it should record the quantity of raw materials originally sent or the quantity of finished or semi-finished goods received back after processing. Views differ: one says the entry should reflect the raw materials sent for reconciliation, while another says it should capture the goods actually received back, with challan details and supporting job-work records.