Track statutory return windows (1-year inputs / 3-year capital goods), compute Section 19(3)/19(6) deemed supply liability with interest, and check Form ITC-04 filing frequency.
Payable along with tax invoice via GSTR-3B with retrospective interest.
Under Section 143 of the CGST Act, 2017, a registered principal may send inputs or capital goods without payment of tax to a job worker under the cover of a delivery challan. However, the goods must be brought back or supplied directly from the job worker's premises within strict statutory deadlines.
Inputs / Raw Materials: Must return within 1 Year (extendable by Commissioner by up to 1 additional year).
Capital Goods: Must return within 3 Years (extendable by Commissioner by up to 2 additional years).
Moulds, Dies, Jigs, Fixtures & Tools: Exempted completely from the 1-year / 3-year return timeline under Section 143(5).
If goods are not returned within the prescribed period, they are deemed to have been supplied by the principal to the job worker on the day when the goods were sent out. Tax must be paid with retrospective interest at 18% p.a. from the original dispatch date.
| Aggregate Annual Turnover | ITC-04 Filing Frequency | Statutory Due Date |
|---|---|---|
| Turnover ≤ ₹5 Crores | Annual (Once per FY) | 25th April following the financial year |
| Turnover > ₹5 Crores | Half-Yearly (Apr-Sep & Oct-Mar) | 25th October (H1) & 25th April (H2) |
Yes. For inter-state movement of goods to a job worker, e-way bill generation is mandatory irrespective of the consignment value (even if below ₹50,000).
Yes, provided the principal declares the job worker's place of business as an additional place of business (APOB), or the job worker is registered under Section 25, or the goods are notified.
Delivery Challan containing mandatory particulars as prescribed under Rule 55 of the CGST Rules must accompany the consignment.