ITC 04 Due Dates and Compliance Tips for FY 2024-25

ITC 04, or Input Tax Credit 04, is an essential form under the Goods and Services Tax (GST) system in India. It is specifically designed to track the movement of goods sent for job work and ensure proper accountability. In this blog, we will explore the details of ITC 04, its importance, filing requirements, due dates, penalties, and other related aspects.

ITC 04 Full Form and Overview

The full form of ITC 04 is “Input Tax Credit 04.” It is a return form required to be filed by manufacturers or principal suppliers to report goods sent and received back from a job worker. The form plays a crucial role in ensuring transparency and compliance in job work-related transactions under GST.

ITC 04 in GST: Why is it Important?

ITC 04 is significant because it helps:

Track Goods Movement: It monitors goods sent for job work and those returned after processing.
Avoid Tax Leakage: Ensures proper tax compliance and reduces the chances of tax evasion.
Claim Input Tax Credit: Proper filing allows the principal supplier to claim input tax credit on goods sent for job work.

ITC 04 Due Date

The ITC 04 form must be filed quarterly. The ITC 04 due date for FY 2024-25 and subsequent years will generally fall on the 25th of the month following the quarter-end. For instance:

Q1 (April to June): Due by 25th July
Q2 (July to September): Due by 25th October
Q3 (October to December): Due by 25th January
Q4 (January to March): Due by 25th April

For past fiscal years like FY 2022-23, the same quarterly deadlines applied.

ITC 04: Who Has to File?

Filing ITC 04 is compulsory for:

Manufacturers or principal suppliers who send goods for job work.
Any business where goods are sent to a job worker and subsequently returned.

ITC 04 Turnover Limit

The turnover limit for ITC 04 filing is applicable to businesses with a turnover exceeding Rs. 5 crore. Businesses below this threshold are exempt from filing ITC 04.

Key Components of ITC 04

Goods Sent for Job Work: Details of goods sent to job workers, including quantity and description.
Goods Returned: Details of goods returned after job work.
Goods Sent to Another Job Worker: If applicable, details of goods sent from one job worker to another.
ITC 4 Digit Code: Classification of goods is done using a 4-digit HSN (Harmonized System of Nomenclature) code.
ITC 16 4: A reference to compliance with Section 16(4) of the CGST Act, which deals with conditions for claiming input tax credit.

ITC 04 in Tally Prime

For businesses using Tally Prime, generating ITC 04 involves leveraging its robust GST compliance features. Here’s a step-by-step guide:

Activate GST in Tally: Ensure GST is activated in Tally Prime by navigating to Gateway of Tally > F11 (Features) > Enable Goods and Services Tax (GST).
Record Job Work Transactions:
- Go to Accounting Vouchers > Create.
- Select the appropriate voucher type (e.g., Delivery Note for goods sent, Receipt Note for goods received).
- Enter details such as item description, quantity, and HSN code.
Generate ITC 04 Report:
- Go to Display > Statutory Reports > GST > ITC 04.
- Review the summary of goods sent and received for job work.
Export ITC 04 Data:
- Select the “Export” option within the ITC 04 report.
- Save the file in the required format for uploading to the GST portal.

By following these steps, businesses can efficiently manage and file ITC 04 using Tally Prime. using Tally Prime, ITC 04 details can be easily managed through its GST compliance features. Tally allows users to:

Record job work transactions.
Generate ITC 04 reports.
Export data for filing through the GST portal.

ITC 04 Penalty and Late Filing Fees

Failure to file ITC 04 on time can result in penalties and late filing fees:

Late Filing Fees: Rs. 50 per day (Rs. 25 under CGST and Rs. 25 under SGST).
Penalty: Additional penalties may apply depending on the nature of non-compliance.

To avoid these costs, businesses must adhere to the ITC 04 time limit for filing.

ITC 04 Offline Tool

The GST portal provides an offline tool to help businesses prepare and file the ITC 04 return. Key features include:

Uploading details of goods sent and received.
Validation of data before submission.
Ease of use for businesses without continuous internet access.

ITC 04 Received but Pending

If goods sent for job work are not returned within the prescribed period (1 year for inputs and 3 years for capital goods), the principal supplier may lose eligibility for input tax credit on those goods. Such cases must be tracked and reported in ITC 04.

Conclusion

ITC 04 is an integral part of GST compliance for businesses engaged in job work. Filing it accurately and on time helps avoid penalties and ensures seamless input tax credit claims. By leveraging tools like Tally Prime and the GST portal’s offline utility, businesses can simplify their compliance process. Staying informed about due dates, turnover limits, and penalties is essential to maintaining GST compliance.

For manufacturers and suppliers, ITC 04 is not just a compliance requirement but a step toward efficient tax management and accountability in the GST ecosystem.

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