GST Filing for Manufacturers
GST compliance for manufacturing units — raw materials, capital goods, job work and dispatches, reconciled every month.
In a typical month, you deal with
- Raw material and consumable purchases
- Capital goods and machinery bills
- Goods sent to and received from job workers
- Dispatches with e-way bills
- Exports, scrap sales or SEZ supplies
How GST works for manufacturers
A manufacturer claims input tax credit on raw materials, consumables, services and capital goods, and pays GST on finished goods. The credit chain is long, so reconciliation matters more than anywhere else. Goods sent to job workers move under challans and must come back within set time limits, dispatches need e-way bills, and once turnover crosses ₹5 crore every B2B invoice must be an e-invoice with an IRN. Where input tax rates are higher than output rates, unused credit may be refundable.
What data should you maintain?
- Tax invoices / e-invoices for dispatches
- Export and SEZ invoices
- Scrap sales
- Credit and debit notes
- Raw material and consumable bills
- Capital goods and machinery bills
- Job work charges
- Import Bills of Entry (IGST)
- Services used in production
- Job work challans and ITC-04
- Stock and production records
- E-way bills
- GSTR-1, GSTR-2B, GSTR-3B
- Refund workings, if credit accumulates
Your monthly GST workflow
- Purchases & imports
- GSTR-2B
- Reconciliation
- Capital goods ITC
- Job work tracking
- E-invoices & e-way bills
- GSTR-1
- GSTR-3B
- GST report
Common GST mistakes
Inputs sent to a job worker must come back within a year, and capital goods within three years — otherwise they are treated as supplied, with GST due.
Job work movements must be reported in ITC-04 — half-yearly above ₹5 crore turnover, yearly below it.
Above the e-invoicing limit, a B2B invoice without an IRN isn’t a valid tax invoice, and your buyer can’t claim credit.
IGST paid on imports reaches GSTR-2B from customs data; Bills of Entry need to be matched so the credit isn’t lost.
Sales of scrap and waste are taxable supplies and must be invoiced and reported.
When inputs are taxed at higher rates than outputs, unused credit can be refunded — but only if claimed within two years.
What should you send every month?
Choose your business type. This is the data a good GST process starts with.
Your monthly GST data checklist
Download this checklist
Get it as a file to share with your team or accountant.
How Tax Paramarsh helps
- Reconcile inputs, capital goods and imports with GSTR-2B
- Track job work challans and prepare ITC-04
- Check e-invoices and e-way bills against your sales
- Prepare GSTR-1 and GSTR-3B — you approve, we file
- Identify inverted-duty refund opportunities
Pricing
Most manufacturers need the Standard (₹599/month) or Pro (₹999/month) plan; units with several GSTINs or heavy volumes move to a custom Business plan. Refunds are quoted separately. Plus 18% GST. Basic covers up to 10 invoices a month, Standard 11–50 and Pro 51–200 — with turnover up to ₹50 lakh for Basic and Standard, and ₹1 crore for Pro. Pay yearly and get 12 months for the price of 10.
See all GST plans →Common questions
When does e-invoicing apply?
When your aggregate turnover in any financial year since 2017-18 has crossed ₹5 crore. B2B invoices, credit and debit notes and exports then need an IRN from the invoice registration portal.
How often is ITC-04 filed?
Half-yearly if your turnover in the previous year was above ₹5 crore, and yearly if it was ₹5 crore or less.
Can I claim ITC on machinery?
Yes, generally — capital goods used in your business carry input tax credit, except where they are used only for exempt supplies or fall in a blocked category.
What is an inverted duty refund?
If the GST rate on your inputs is higher than on your finished goods, credit can pile up. That unused input credit can be claimed as a refund, within two years of the relevant date.
Do I need an e-way bill for sending goods to a job worker?
Generally yes, when the goods are worth more than ₹50,000, and for inter-state movement to a job worker even below that, as the rules require. The goods move under a delivery challan.
Often needed alongside GST
GST for other industries
Let us manage your factory’s GST every month.
Accurate data, reconciled credit, filed on time.