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

Form ITC 04, or Input Tax Credit 04, is an essential compliance document under the Goods and Services Tax (GST) regime in India. It is specifically designed to track the movement of goods sent for job work and their return, ensuring proper accountability and control. In this blog, we explore the details of ITC 04, its importance, who needs to file, turnover-based rules, due dates, penalties, and more.

ITC 04 Full Form and Overview

The full form of ITC 04 is “Input Tax Credit 04.”
It is a return form that must be filed by manufacturers or principal suppliers who send goods to job workers. It captures the movement of goods to and from job workers to maintain transparency in job work-related transactions.

Why is ITC 04 Important under GST?

ITC 04 plays a key role in:

• ✅ Tracking Goods Movement: Ensures accountability of goods sent for job work and their return.
• ✅ Preventing Tax Leakage: Helps in tax compliance and prevents misuse of input tax credit.
• ✅ Claiming ITC: Allows the principal to claim input tax credit on goods sent for job work, provided they are returned within the prescribed time.

Turnover Limit and Filing Frequency for ITC 04

Filing frequency for ITC 04 depends on your aggregate turnover in the preceding financial year:

Turnover in Previous FY	Filing Frequency	Period Covered
Up to ₹5 crore	Annually	1st April – 31st March
Above ₹5 crore	Half-yearly	Apr–Sept and Oct–Mar

🔔 Note: Earlier, ITC-04 was filed quarterly by all businesses. However, from 1st October 2021, the turnover-based frequency was introduced via Notification No. 35/2021 – Central Tax.

ITC 04 Due Dates

Filing Period	Due Date
April – September	25th October
October – March	25th April
Full Year (if turnover ≤ ₹5 crore)	25th April

👉 Always check the GST portal or latest CBIC notifications in case of extensions.

Who Has to File ITC 04?

ITC 04 must be filed by:

• 🏭 Manufacturers or principal suppliers sending goods for job work.
• 📦 Businesses involved in the movement of goods to and from job workers, even if the goods move from one job worker to another.

Key Components of ITC 04

• Goods Sent for Job Work: Details such as description, quantity, and HSN code.
• Goods Returned: Records of goods received back after processing.
• Goods Sent to Another Job Worker: Details if the goods are further processed or sent to another job worker.
• Challan Number & Endorsements: Challans issued must be endorsed as goods move between job workers.
• HSN Code: Typically uses a 4-digit HSN classification.

What Happens If Goods Are Not Returned?

As per Section 143 of the CGST Act:

• Inputs must be returned within 1 year.
• Capital goods must be returned within 3 years (except moulds, dies, jigs, and fixtures).
• If not returned within these timelines:
  • It is deemed as a supply from the principal to the job worker.
  • Must be reported in GSTR-1.
  • GST and interest become payable.

Using Tally Prime for ITC 04

Tally Prime makes ITC 04 filing easier through its GST compliance features.

Steps:

1. Enable GST:
   • Gateway of Tally > F11 (Features) > Enable GST.
2. Record Transactions:
   • Use Delivery Note for sending goods and Receipt Note for returns.
3. Generate ITC 04:
   • Display > Statutory Reports > GST > ITC 04.
4. Export for Filing:
   • Export the file in the format accepted by the GST portal.

ITC 04 Penalty & Late Fees

If ITC 04 is not filed within the due date:

• 💰 Late Fee: ₹50 per day (₹25 CGST + ₹25 SGST).
• ⚠️ Penalty: Additional penalties may apply for serious non-compliance.

ITC 04 Offline Tool

The GST portal offers an offline utility to help businesses prepare and file Form ITC 04:

• Upload data of goods sent/received.
• Validate entries before submission.
• Useful for businesses with limited internet access.

ITC 04: Received but Pending

If goods are sent for job work but not returned within the prescribed time, the business:

• Must reverse input tax credit on such goods.
• Should report them as deemed supply in GSTR-1.
• Should track timelines to avoid loss of ITC and interest liabilities.

✅ Conclusion

Form ITC 04 is a vital part of job work compliance under GST. By filing accurately and on time—whether annually or semi-annually based on turnover—businesses can safeguard their input tax credit and avoid penalties.

🔧 Tools like Tally Prime and the GST offline utility make this process easier and more efficient.

For manufacturers, job workers, and principal suppliers, staying informed about filing frequencies, due dates, and documentation requirements is key to smooth GST compliance.

Here are some related internal links

1. Understanding GST: GST in India Explained: Full Form, Meaning, and Key Facts
2. Job Work under GST: Job Work Under GST | Know the SAC and HSN Codes in India
3. Filing GST Returns: GST Returns filing Guide: Types, meaning and online process
4. Input Tax Credit (ITC): Conditions for Availing Input Tax Credit
5. GST Compliance: Simplified ITC Rules for ECOs: Key Takeaways Circular 240/2024
6. GST Notifications and Updates: GST Notifications 2024 Including Circulars and press release