ITC-04 is a quarterly GST return that principal manufacturers file to report goods sent to and received from job workers, including inputs, semi-finished goods, and capital goods. It preserves input tax credit on job work movements.
Why It Matters
ITC-04 ties every job work challan to GST law. Skipping or filing incorrect ITC-04 can trigger reversals of input tax credit, interest, and penalties. For MSMEs running multiple job workers (plating, grinding, polishing, heat treatment), ITC-04 compliance is a real operational burden unless the ERP does the heavy lifting.
Example with Indian Context
A Pune-based valve manufacturer sends material under 120 job work challans in a quarter across 8 vendors. Before ITC-04, he consolidates challans sent, material received, scrap, and pending balances. The return is filed half-yearly for taxpayers below INR 5 crore turnover, and more frequently for larger taxpayers. Wrong data here can invite scrutiny and reversal of input credit.
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How ERPDrive Handles It
ERPDrive generates the ITC-04 JSON directly from your job work challan ledger. No spreadsheets. The system reconciles material sent, received, and scrap automatically, and flags overdue challans before they impact ITC.
See It in Your Factory
ERPDrive handles ITC-04 as a first-class workflow alongside BOM, MRP, quality, and GST. Book a 30-minute demo.
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