ITC04

Input Credit on Job Work and ITC-04

Know About Input Credit on Job Work

GST is implemented in lower than 4 months. so there is a large number of issues and doubts are not resolved yet.
One of the major bills which create so many troubling for manufacturing industry is called Input credit on job work.
the Main manufacturer company forward goods for next process to a job worker.

Here below is the basic structure of the form of GST ITC-04

Input Credit on Job Work

What is job work?

Job work means processing or working on raw materials or semi-finished goods supplied by the principal manufacturer to the job worker. This is to complete a part or whole of the process which results in the manufacture or finishing of an article or any other essential operation.

 

For Example
A suit Manufacturer sends half Raw material for made suits to Job Workers(Tailors). In this case, the main manufacturing firm will be allowed to take credit for tax paid on the purchase of such goods(Suit’s Raw Material) sent on job work.

 

As per GST Act, job work means any treatment or process undertaken by a person on goods belonging to another registered person. The person doing the job work is called job worker.

Input Credit to available in both cases when goods sent to Job Worker:-

  1. From principal’s place of business:- is the primary location where a taxpayer’s business is performed.
  2. Directly from the place of supply of the supplier of such goods

Input Credit on Job Work

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Comments

    • syed
    • January 30, 2018

    Dear Sir /madam

    what is original challan number please can u explain me how to enter after job work,.

  1. The details of goods like original Challan Number ,original challan date etc. received back will be mentioned here. The goods may be received by the principal or sent to another job worker directly from the first job worker’s place of business.

    The whole details of original challans and new challans must be mentioned here .

    • vipul pankhaniya
    • January 31, 2018

    what is taxable value in itc-04 form? weather purchase taxable value or job work taxable value or both add

  2. Both of value(purchase taxable value or job work taxable value) will be mentioned in taxable Value column in ITC-04

  3. Pingback: 12 Cases where Input Tax credit (ITC) is not available to set off against GST ·

    • VAISHALI
    • February 3, 2018

    WHAT IF THE TAXABLE VALUE OF GOODS AND JOBWORK ARE NOT KNOWN AT THE TIME OF SENDING GOODS

  4. Spot on with this write-up, I actually think this website needs much more consideration. I’ll probably be again to learn way more, thanks for that info.

  5. Pingback: GST Offline Tool- ITC-03 and ITC-04 ·

  6. Pingback: Hemraj Sharma

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