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 andSUN]

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.

AI Summary

Job-work reporting in ITC-04 focuses on Table 5A, with differing views on whether to show returned goods or original inputs. Table 5A of Form GST ITC-04 concerns goods received back from a job worker and is linked to the challan under which the goods were originally sent. One view states that the quantity reported should reflect the goods actually received back after processing, while Table 4 captures the goods sent for job work. The discussion also notes that the principal should maintain records correlating raw materials sent with finished goods received, including input-output ratios, process loss, scrap generation, and other supporting documents for reconciliation.