What job work means under GST
Section 2(68) of the CGST Act defines job work as any treatment or process undertaken by a person on goods belonging to another registered person. The owner of the goods is the principal, and the person doing the work is the job worker. Typical examples are sending fabric for dyeing, castings for machining, or components for plating. Section 143 is written for a registered principal, so the scheme is available only when the owner of the goods is registered.
The point of the scheme is cash flow. Without it, sending goods out would look like a supply and attract tax. Under Section 143, the principal sends the goods without payment of tax, under intimation and subject to prescribed conditions, and can move them from one job worker to another.
Time limits for bringing goods back
Section 143(1) sets how long goods can stay with the job worker. Within that time, the principal must either bring them back to any of its places of business without payment of tax, or supply them from the job worker's premises on payment of tax (or for export, with or without payment of tax).
| Goods sent | Time limit | Extension the Commissioner can allow |
|---|---|---|
| Inputs, including intermediate goods from processing | 1 year from being sent out | Up to 1 more year, on sufficient cause |
| Capital goods | 3 years from being sent out | Up to 2 more years, on sufficient cause |
| Moulds and dies, jigs and fixtures, tools | No time limit | Not applicable |
If inputs or capital goods are not returned or supplied within the time limit, Section 143(3) and (4) treat them as supplied by the principal to the job worker on the day they were sent out. Rule 45(4) then requires the principal to declare that supply in GSTR-1 and pay the tax with interest. Because the supply is treated as made on the dispatch date, an overdue list matters more than it seems.
Supplying goods directly from the job worker's premises has a condition: the principal must declare the job worker's premises as its additional place of business, unless the job worker is registered or the goods are notified by the Commissioner. Waste and scrap generated during job work can be supplied by the job worker on payment of tax if the job worker is registered, or by the principal if not (Section 143(5)).
The job work challan
Rule 45(1) requires inputs, semi-finished goods and capital goods to travel to the job worker under a challan issued by the principal, including goods sent directly to the job worker. When goods move from one job worker to another, either the principal or the sending job worker can issue the challan, and the principal's challan can be endorsed by each job worker with the quantity and description of goods sent on or returned.
The challan must contain the details in Rule 55: number and date, consignor and consignee with GSTINs, HSN and description, quantity, taxable value, place of supply for inter-State movement, and signature. The full list and copy rules are in delivery challans under GST.
Who files ITC-04, and how often
Form GST ITC-04 is filed by the principal, not the job worker. It is a declaration of the inputs and capital goods sent to, received back from, moved between, or supplied from the premises of job workers in the period, for both registered and unregistered job workers.
Until September 2021, ITC-04 was quarterly. From 1 October 2021, Notification 35/2021-Central Tax changed Rule 45(3) so that the frequency depends on the principal's aggregate turnover in the immediately preceding financial year:
| Aggregate turnover in the preceding financial year | Period | Due date |
|---|---|---|
| More than ₹5 crore | April to September | 25 October |
| More than ₹5 crore | October to March | 25 April |
| Up to ₹5 crore | Financial year (April to March) | 25 April after the year ends |
The due date is the 25th day of the month after the period ends, unless the Commissioner extends it by notification. For example, a principal above the threshold files April to September 2026 by 25 October 2026, while a principal at or below it files 2026-27 by 25 April 2027.
What tables 4 and 5A contain
ITC-04 has four reporting tables. Most principals who bring goods back to their own premises use only the first two.
| Table | What it reports |
|---|---|
| 4 | Inputs and capital goods sent for job work, including goods sent directly to the job worker's premises. Each entry is by challan: job worker GSTIN (or State, if unregistered), challan number and date, and item details. |
| 5A | Inputs and capital goods received back from the job worker they were sent to, along with losses and wastes. Either the principal's original challan or the job worker's fresh challan is reported. |
| 5B | Goods received back from a job worker other than the one they were originally sent to, with losses and wastes. |
| 5C | Goods sent to a job worker and then supplied from the job worker's premises, with losses and wastes. |
Losses and wastes are reported in table 5A, so recording them when the goods come back saves reconstructing them at filing time.
Filing ITC-04 on the portal
- Log in to the GST portal and go to Services > Returns > ITC Forms, then GST ITC-04.
- Enter challans online, or prepare them in the offline tool and upload. The portal's manual recommends the offline upload for more than 500 challans.
- Pick the financial year and period that matches your filing frequency.
- File with DSC or EVC. The portal does not offer a preview before filing, so check the data first.
A checklist for principals
- Issue a challan with the Rule 55 details for every dispatch to a job worker.
- Record every return, part-return, loss and waste against the original challan.
- Review goods still out against the one-year and three-year limits each month.
- Pay tax on anything treated as supplied because it overran its limit, with interest.
- Check your turnover for the previous year to confirm whether you file half-yearly or annually.
- Prepare tables 4 and 5A (and 5B or 5C if they apply) and file by the 25th.
When finished goods made by the job worker are sold, the sale goes on a normal tax invoice. See GST invoice format and CGST, SGST and IGST, and the GST calculator for the tax on the sale.
- CGST Act, Section 143: Job work procedure (CBIC)
- CGST Act, Section 2(68): Definition of job work (CBIC)
- CGST Rules, Rule 45: Inputs and capital goods sent to the job worker (CBIC)
- CGST Rules, Rule 55: Transportation of goods without issue of invoice (CBIC)
- Form GST ITC-04 manual (GST portal tutorial)
- Form GST ITC-04 FAQs (GST portal tutorial)
This guide explains the rules in general terms. It is not tax advice: check the current notifications or ask your CA before you rely on it for a filing.