Manufacturing and industry
For factories and industrial units — the payment rule that disallows a deduction at 31 March, credit blocked on the buildings you construct, job work, scrap, refunds when your inputs are taxed higher than your output, and distributing credit across states.
7 articles · written and reviewed by CA K Sanjay Bhargav, Chartered Accountant
Cornerstone guide
MSME 45-Day Payment Rule: The Deduction You Lose
Every other payment in this section can be saved by paying before you file. This one cannot. If the supplier is unpaid at 31 March, the deduction moves to next year and nothing you do in between changes it.
GST on Job Work: Challans, Time Limits and Rates
The relief is conditional on return within a fixed period. When it lapses, the supply is deemed to have happened on the date of despatch — with interest running from then, not from when you noticed.
GST TDS on Scrap Sales: The 2% Deduction, and Reverse Charge
Scrap sales used to be the least interesting line in a manufacturer's return. Two changes turned the buyer into a deductor and, in some cases, into the person paying the tax.
Inverted Duty Structure Refund: What You Can Claim
The formula is the whole subject. It excludes input services, it apportions by turnover, and it leaves a residue that no amount of correct filing will recover.
ITC on Factory Construction: Where 17(5) Blocks It
For a few months, a building used for a taxable business could qualify as plant and carry credit. Then the wording was changed retrospectively to a date seven years earlier.
Is the 15% Manufacturing Tax Rate Still Available?
The window closed on 31 March 2024 and was never reopened. Companies that got in continue at 15%. Companies incorporating now do not, and should stop planning around it.
ISD Is Now Mandatory: Stock Transfers Across States
Two registrations under one PAN are distinct persons. Moving goods between them is a supply, and from April 2025 the credit on your head-office costs has to reach them through a route you may not have registered for.
Other topics
- Tax notices and assessments
- Business tax, audit and filing
- GST — registration, returns and credit
- Foreign income, RSUs and ESOPs
- NRI money, property and repatriation
- Foreign-owned companies in India
- Bank finance and company compliance
- Internal controls, IT audit and data protection
- Service exports, GCCs and professionals
- Real estate, JDAs and development
- The Income-tax Act 2025 transition
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