Sending Goods for Job Work: Challans, Time Limits and ITC-04 Due on 25 October
Inputs sent to a job worker under a delivery challan must return within one year, and capital goods within three years, or they are treated as supplied when sent. ITC-04 is filed half-yearly by businesses above ₹5 crore turnover, due 25 October for April to September, and yearly by 25 April for smaller ones.
Most Indian manufacturing relies on job workers: platers, heat treaters, embroiderers, printers, machine shops. GST lets you send goods to them without tax, as long as you track the goods and file ITC-04.
Sending goods without GST
A principal manufacturer can send inputs, semi-finished goods and capital goods (such as moulds and dies) to a job worker under a delivery challan, without paying GST, and keep the input credit.
The goods must come back within:
| Goods | Time limit |
|---|---|
| Inputs | 1 year from the date they were sent |
| Capital goods (other than moulds, dies, jigs and fixtures, and tools) | 3 years |
If they do not return in time, they are treated as supplied on the date they were sent, and GST is payable with interest.
Documents
- ✓Delivery challan for each dispatch, with the job worker's details, description, quantity and value.
- ✓E-way bill where the value requires one, even though no GST is charged.
- ✓Record of goods received back, scrap and waste.
ITC-04: the job work return
| Your aggregate turnover | ITC-04 frequency | Due dates |
|---|---|---|
| Above ₹5 crore | Half-yearly | 25 October (April to September) and 25 April (October to March) |
| Up to ₹5 crore | Annual | 25 April |
ITC-04 lists goods sent to job workers, goods received back, and goods sent directly from the job worker's premises to customers.
For April to September 2026, larger manufacturers must file by 25 October 2026.
A worked example
A Rajkot pump maker sends ₹12 lakh of castings to a machining job worker in April 2026 under challans. ₹11 lakh worth comes back machined by August. ₹1 lakh is still with the job worker in October.
- ✓ITC-04 for April to September: report ₹12 lakh sent and ₹11 lakh received.
- ✓The remaining ₹1 lakh must return by April 2027, or it will be treated as supplied in April 2026, with GST and interest.
Common mistakes
- ✓No challan for small dispatches.
- ✓Goods lost track of at the job worker beyond one year.
- ✓Scrap at the job worker not recorded.
- ✓ITC-04 not filed because "nothing was sold".
Frequently asked questions
Does the job worker charge GST?
Yes, on job work charges, at the applicable rate for the job work service.
Can goods be sent directly from the supplier to the job worker?
Yes. The time limit starts from when the job worker receives them.
Do I need ITC-04 if I had no job work in the period?
Check the current portal requirement for nil returns.
Sources
This is a summary, not legal advice. Confirm with your chartered accountant.
Written by
Founder, Airwix Technologies (Sleet)
Vatsal Sutariya is the founder of Airwix Technologies in Ahmedabad, the company that builds Sleet: SleetHR for HR and payroll, and Sleet Accounting for GST billing and books. He writes about GST, invoicing, business tax and choosing software for Indian businesses, and checks each rule against the official notification before it is published.
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