Compliance Guide · Job Work

Job Work Management & ITC-04 Filing with ERP (2026)

Updated 2026  ·  ~7 min read

Sending material out for processing — job work — is common in manufacturing, from stitching and plating to machining and finishing. But tracking what went out, what came back, and reporting it correctly under GST (ITC-04) is where many manufacturers struggle. This guide explains job work under GST and how an ERP keeps it accurate.

Note: GST rules and ITC-04 filing frequency are updated from time to time. Treat this as general guidance and confirm the current requirements for your business with your CA or the official GST portal.

What is job work under GST?

Job work is processing done on goods supplied by a principal manufacturer. The principal sends inputs or semi-finished goods to a job worker using a delivery challan, the job worker processes them, and the goods (or finished output) come back. Ownership stays with the principal throughout.

What is ITC-04?

ITC-04 is the declaration a principal manufacturer files to report goods sent to and received back from job workers for a given period. It keeps your input tax credit and stock accurate and provides an audit trail of job-work movements.

Job work flow — step by step

  1. Issue a delivery challan when sending inputs to the job worker.
  2. Track WIP lying with the job worker.
  3. Receive goods back against the challan (full or partial).
  4. Account for scrap/loss during processing.
  5. Report in ITC-04 for the period.

Common challenges

  • Challans and returns tracked on paper, hard to reconcile.
  • Partial receipts and multiple job workers get confusing.
  • Scrap and process loss are not recorded.
  • ITC-04 prepared manually at the last minute.

How an ERP handles job work & ITC-04

A manufacturing ERP like LastingERP makes job work part of your normal flow:

  • Delivery challans for material sent out, linked to each job worker.
  • Live tracking of goods lying with job workers and partial receipts.
  • Scrap/loss capture for accurate yield and costing.
  • ITC-04-ready data so returns are quick and correct.
  • Full traceability linking job work to production and costing.

Frequently asked questions

What is ITC-04 in GST?
ITC-04 is a declaration filed by a principal manufacturer to report goods sent to and received back from job workers for a period. It keeps input tax credit and stock accurate. Confirm the current filing frequency for your turnover.
Is a delivery challan required for job work?
Yes. Goods sent for job work move on a delivery challan, since ownership stays with the principal manufacturer and it is not a sale.
Can ERP software prepare ITC-04 data?
Yes. An ERP that tracks job-work challans and receipts can produce ITC-04-ready data, making the return quick and accurate.
How do I track material lying with a job worker?
An ERP shows goods sent, received back and still lying with each job worker in real time, including partial receipts and scrap.

Make job work & ITC-04 effortless

See LastingERP track job work from challan to ITC-04.

Book a Free Demo +91-9041424193

This article is general information, not legal or tax advice. GST rules and ITC-04 requirements change - verify current rules with a qualified professional or the official GST portal.