Manufacturing
Manufacturers deal with more moving parts than most businesses: raw materials, work in progress, job workers, capital goods and bank working-capital limits. Getting input tax credit and inventory right protects both cash flow and the bank relationship.
What we help with
- GST compliance, including input tax credit on inputs and capital goods
- Job work documentation and movement of goods
- Inventory records, stock statements for the bank and stock audits
- Udyam (MSME) registration, statutory or tax audit and income tax
Points to watch
- 1Goods sent to job workers must be tracked and returned within the time allowed, or tax may become payable.
- 2Stock reported to the bank, in the books and in GST records should agree; differences raise questions at audit time.
- 3Udyam registration gives access to MSME benefits, including protection against delayed payments from buyers.
- 4TDS applies to many contractor and service payments; missing it can disallow the expense.
General points, not advice for your case. Limits and dates change; we confirm what applies to you.
Input tax credit across the production chain
Manufacturers pay GST on raw materials, packing material, services and capital goods. Most of it can be claimed as input tax credit, but only if the supplier has reported the invoice, the goods are received and the records are in order. Credit on capital goods and on items used partly for exempt products follows separate rules. Monthly reconciliation keeps working capital from being locked up in unclaimed credit.
Job work
Sending goods to a job worker for processing does not attract GST at that point if the goods come back within the time allowed and the movement is properly documented. If they do not return in time, the dispatch can be treated as a supply. We set up the challans and the tracking so this does not happen by accident.
Inventory, banks and audits
Inventory is usually the largest number on a manufacturer’s balance sheet and the one banks watch most closely.
- Value stock consistently: raw materials, work in progress and finished goods.
- Make sure the stock statement submitted to the bank agrees with the books.
- Expect a stock audit if you have a working-capital limit, and keep records that make it quick.
MSME registration and payments
Udyam (MSME) registration is free and gives access to schemes and to legal protection against delayed payments from buyers. It also affects how your customers must account for overdue amounts owed to you. Keep the registration updated as turnover and investment change.
Running a business in manufacturing?
Call during office hours, or send a WhatsApp message describing what you need.
- No documents needed for the first call
- Hindi or English