GST Job Work Procedures & Form GST ITC-04: Challan Tracking & Time Limits

Job work is an essential manufacturing mechanism across the engineering, steel fabrication, rice milling, and textile sectors in Chhattisgarh. Under Section 143 of the CGST Act, 2017, a registered principal manufacturer can send inputs and capital goods to a job worker without paying GST, provided strict tracking and timeline conditions are met.

1. Statutory Time Limits for Return of Goods (Section 143(1))

Goods sent for job work must be brought back to the principal's factory or sold directly from the job worker's premises within:

• Inputs & Semi-Finished Goods: 1 Year from the date of dispatch.
• Capital Goods (Machinery, Dies, Moulds): 3 Years from the date of dispatch (Moulds, dies, jigs, and fixtures have no return time limit).

Consequence of Exceeding Time Limit: If inputs are not received back within 1 year (or capital goods within 3 years), the transaction is deemed to be a taxable supply made by the principal to the job worker on the day the goods were originally sent out, with mandatory GST liability plus 18% annual interest from the date of original challan.

2. Documentation: Mandatory Delivery Challan under Rule 55

Goods must move under a serial numbered Delivery Challan containing:

• Date and number of the delivery challan;
• Name, address, and GSTIN of the principal and job worker;
• HSN code, description, quantity, and taxable value of goods;
• Tax rates and breakdown (CGST/SGST/IGST);
• Place of supply and signature.

3. Mandatory Filing of Form GST ITC-04

Form GST ITC-04 contains details of goods dispatched, received back, or lost in job work:

For job work stock reconciliation, ITC-04 filings, and manufacturing GST advisory in Raipur and Urla, connect with Rabi Agrawal & Associates.