The Central Board of Indirect Taxes and Customs (CBIC) notified the relaxation in the requirement of filing job work declaration in Form GST ITC-04.
The ‘Job work’ is defined as the process which is undertaken on goods by a person that belongs to another registered person. The ownership of goods does not shift to the job-worker but it remains with the main manufacturer. The work of the job worker is to carry out the process which is given by the main manufacturer on the goods that are supplied to him. The person who is doing the job work is called a job worker.
For example, a big belt manufacturer (principal) sends out the half-made belts (upper part) to the smaller manufacturers (job workers) to punch the hole. The smaller manufacturers (job workers) send back the belts to the big manufacturer (principal).
Requirement of filing FORM GST ITC-04 under rule 45 (3) of the CGST Rules has been relaxed as taxpayers whose annual aggregate turnover in preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months and taxpayers whose annual aggregate turnover in preceding financial year is upto Rs. 5 crores shall furnish ITC-04 annually.
The CBIC has notified the Central Goods and Services Tax (Eighth Amendment) Rules, 2021.
In Rule 45(3) of the CGST Rules, in sub-rule (3), with effect from October 01, 2021, for the words “during a quarter”, the words “during a specified period” shall be substituted; for the words “the said quarter”, the words “the said period” shall be substituted; after the proviso, the following Explanation shall be inserted, namely “Explanation. – For the purposes of this sub-rule, the expression “specified period” shall mean (a) the period of six consecutive months commencing on the 1st day of April and the 1st day of October in respect of a principal whose aggregate turnover during the immediately preceding financial year exceeds five crore rupees; and (b) a financial year in any other case.”
The details of challans in respect of goods dispatched to a job worker or received from a job worker during a specified period shall be included in FORM GST ITC-04 furnished for that period on or before the twenty-fifth day of the month succeeding the said period or within such further period as may be extended by the Commissioner by notification in this behalf. Provided that any extension of the time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.
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