Notification No. 38/2019 – Central Tax Explained

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Notification No. 38/2019 – Central Tax: Seeks to waive filing of FORM ITC-04 for F.Y. 2017-18 & 2018-19.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

G.S.R (E).— In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council,

Hereby notifies the registered persons required to furnish the details of challans in FORM ITC-04 under sub-rule (3) of rule 45 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), read with section 143 of the said Act, as the class of registered persons who shall follow the special procedure such that the said persons shall not be required to furnish FORM ITC-04 under sub- rule (3) of rule 45 of the said rules for the period July, 2017 to March, 2019:

Provided that the said persons shall furnish the details of all the challans in respect of goods dispatched to a job worker in the period July, 2017 to March, 2019 but not received from a job worker or not supplied from the place of business of the job worker as on the 31^st March, 2019, in serial number 4 of FORM ITC-04 for the quarter April-June, 2019.

(Ruchi Bisht)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 38/2019 – Central Tax

Q1: What does Notification No. 38/2019 – Central Tax do?

Answer:
It waives the requirement to file FORM ITC-04 for the period July 2017 to March 2019 for all registered persons involved in job-work transactions.

Q2: Which law empowers the Government to issue this waiver?

Answer:
Section 148 of the CGST Act allows the Government to prescribe special procedures for certain classes of taxpayers.

Q3: What exactly is FORM ITC-04?

Answer:
ITC-04 is a quarterly declaration under Rule 45(3) for reporting:
Goods sent to job workers
Goods received back
Goods supplied from job worker’s premises
It is mandatory for businesses using job-work processes under Section 143.

Q4: For which periods is ITC-04 waived?

Answer:
The waiver applies to:
FY 2017–18 (July 2017–March 2018)
FY 2018–19 (April 2018–March 2019)

Q5: Is the waiver unconditional?

Answer:
No ❌
The proviso states that goods not received back or not supplied by 31 March 2019 MUST be reported in ITC-04 for Apr–Jun 2019.

Q6: What needs to be reported in Serial No. 4 of ITC-04?

Answer:
Serial No. 4 captures:
Goods still lying with job workers
Goods not returned within Section 143 time limits
Goods pending as on 31 March 2019

Q7: Do small manufacturers also benefit from this waiver?

Answer:
Yes ✔️
All registered persons using job-work processes benefit, regardless of turnover.

Q8: Does this waiver apply to all future periods?

Answer:
No ❌
The waiver applies only for July 2017 to March 2019.
ITC-04 filing remains mandatory for FY 2019–20 onwards.

Q9: Does the waiver impact ITC (Input Tax Credit) eligibility?

Answer:
No.
It only relaxes reporting requirements; ITC rules under Section 16 & Section 143 still apply.

Q10: What happens if goods were not returned within 1 or 3 years?

Answer:
Under Section 143, goods must return within:
1 year for inputs
3 years for capital goods
If not, such goods must be treated as deemed supply, and ITC may need reversal.

Q11: Should challans still be maintained even if ITC-04 is waived?

Answer:
Yes ✔️
Proper documentation is mandatory under Rule 45 for audit and verification.
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Q12: I didn’t track job-work challans properly. Will the waiver help me?

Answer:
Yes.
Since ITC-04 filing for two years is waived, you get relief from retrospective reporting.
You only need to report pending goods in Apr–Jun 2019 ITC-04.

Q13: Is any action required if all goods were returned by 31 March 2019?

Answer:
No ✔️
If all materials came back or were supplied onward, nothing needs to be reported in ITC-04 for Apr–Jun 2019.

Q14: Does this notification impact job-work procedures under GST?

Answer:
Not directly.
Job-work rules under Section 143 remain unchanged; the waiver only reduces reporting load.

Q15: How can businesses avoid ITC-04 compliance issues in future?

Answer:
Maintain challan-wise tracking
Automate job-work records
Use Finodha GST Compliance services
File returns before due dates
Reconcile goods movement regularly
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🎯 Conclusion

Notification No. 38/2019 – Central Tax offers huge relief for businesses involved in job work, eliminating the need to file ITC-04 for two major financial years.
Only goods pending with job workers as of 31 March 2019 must be reported.

To stay compliant and avoid future penalties:

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