In Surat a weaving unit's goods often leave the premises without being sold. Grey takas go to a process house (mill) for dyeing or printing, or your own beam and weft yarn go to an outside job weaver. In both cases you are the principal and the other side is the job worker. GST lets you send such goods without tax, but you must report them — that report is ITC-04.
What goes into ITC-04
- Goods sent to the job worker: challan number, date, description, quantity (metres / kg), taxable value and GST rate.
- Who the job worker is: their GSTIN (if registered) and state.
- Goods received back: how much, and when, against which original challan.
- Anything the job worker sent on directly, sold from their premises, or that became waste / scrap.
The principal files this form. If a party sends you its beam and yarn and you do the job work, the party files ITC-04; you raise a job bill (SAC 998821) for your charges.
When to file
| Last year's aggregate turnover | How often | Due date |
|---|---|---|
| Above ₹5 crore | Every six months | April–September: 25 October · October–March: 25 April |
| Up to ₹5 crore | Once a year | 25 April (for the whole previous year) |
Challans and the one-year rule
Goods always go to the job worker on a delivery challan (Rule 55) stating that they are sent for job work, not sold. For inter-state job work, an e-way bill is needed whatever the value.
Inputs (grey, yarn, beams) must come back within one year, capital goods within three. If they don't, GST treats them as supplied and tax becomes payable. So keep an eye on old stock lying at the process house or with a job weaver.
Example
On 10-08-2026 Shree Fabrics sends 40 grey takas × 117 m = 4,680 m to a process house on a challan (taxable value ₹2,88,990, rate 5% shown). On 28-08-2026, 4,420 m of finished fabric comes back.
- Short: 4,680 − 4,420 = 260 m → shrinkage 260 ÷ 4,680 × 100 = 5.56%
- The quality's normal is 5% → up to 234 m is fine; 26 m extra is missing
- ITC-04 (in the April–September return if turnover is above ₹5 crore): sent — challan no., 10-08-2026, grey fabric, 4,680 m, ₹2,88,990; received back — against the same challan on 28-08-2026
Run the shrinkage with your own numbers in the shrinkage calculator — enter your normal % and see the extra metres and rupees lost.
Practical tips for a weaving unit
- Put clear metres and value on every challan — these are exactly the numbers that go into ITC-04.
- Always link a receipt back to its original challan; "received" without a challan won't reconcile later.
- Check mill stock every month: what has been lying there for 30, 60 or more than 60 days.
- With several firms, each firm files its own ITC-04 — issue the challan from the right firm.
- Cross-check the GST value on challans with the GST calculator.
How Loomiro helps
In Mill & Job Work, grey takas go out on a Mill (RFD) challan printed with "job work, not a sale" (Rule 55). On the mill return you enter finished metres; the shrinkage % is checked against the quality's normal and you're warned if it's higher. The shrinkage report shows grey vs finished by mill, quality and lot, and mill stock by age (0–15 / 30 / 60 / 60+ days). A party's beam coming in (job work in) and your own beam or yarn going to an outside job weaver (job work out) are both tracked, and the ITC-04 CSV comes out separately for each firm — hand it to your CA or upload it on the portal.
This is general information, not tax or legal advice. Confirm the ITC-04 frequency, due dates and the rules for your case with your CA.