Job work and itc-04

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ASHISH (Querist)
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18 June 2018 our company is a manufacturer of fabrics. We purchase fibre/cotton, other consumables including coal. We send all these items on different challans to job worker. The problem arises in filing ITC-04 as against these 3 items on 3 challans we get yarn as output of jobwork and it's received on single challan. This is a continuos process throughout the year. My query is which original challan No. to be shown in ITC-04 when we receive back the yarn. Our ITC-04 is getting delayed since we couldn't find the answer.

ASHISH

ASHISH (Querist)
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29 June 2018 Please provide a resolution

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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09 July 2024 In your case, where your company is a manufacturer of fabrics and sends various inputs (like fibre/cotton, consumables including coal) to job workers, and receives yarn as output, the challenge lies in correctly reporting these transactions in the GST ITC-04 form.

Here’s how you can approach the situation:

1. **Understanding ITC-04 Requirements**: The GST ITC-04 form is used for reporting details of goods sent for job work and received back from job workers. It requires you to report the challan numbers of goods sent for job work and received back.

2. **Challan Number for Yarn Received**: Since you receive yarn back as output from job work, you need to report the challan number under which this yarn is received back from the job worker.

3. **Consolidation of Inputs Sent**: Although you send inputs (fibre/cotton, consumables, coal) on different challans to job workers, when you receive the yarn back, it typically comes on a single challan (reflecting the consolidated output of yarn).

4. **Reporting in ITC-04**:
- When filling out ITC-04, you should report the challan number that corresponds to the receipt of yarn back from the job worker.
- This challan number should be from the documentation provided by the job worker when they return the processed goods (yarn) to you.

5. **Documentation and Record-Keeping**: Ensure you maintain proper documentation of the challans issued for sending inputs to job workers and the challan issued by the job worker when they return the yarn. This documentation will help you accurately report in ITC-04.

6. **Handling Continuous Process**: Since this process is continuous throughout the year, ensure your records are updated regularly. The challan number reported in ITC-04 should match the actual documentation you have for the goods received.

7. **Consultation**: If you continue to face difficulties in reporting or if there are specific complexities in your operations, consider consulting with a GST expert or a chartered accountant who can provide tailored advice based on the specifics of your business operations and GST compliance requirements.

By focusing on reporting the challan number associated with the yarn received back from job work, you can ensure compliance with the GST ITC-04 requirements and avoid delays in filing.

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