GST Registration for Manufacturing Unit

Apr 1, 2022

126 2 mins

Manufacturers are eligible for composition under Section 10 of the CGST Act. Furthermore, manufacturers are subject to a composition rate of 2.5%. In this article, we’ll dwell on GST registration for a manufacturing unit.

A manufacturer is a person who not only utilises hired labour in the production or manufacturing of excisable commodities but also anybody who produces or manufactures them on his own account. As a result, a person may be considered as a manufacturer if he is engaged in the production or manufacturing of things, either through hired labour or through himself.

In terms of Section 2(72), the CGST Act defines the term ‘manufacture’ as follows:

‘Manufacture’ means the processing of raw material or inputs in any manner that results in the emergence of a new product having a distinct name, character and use and the term ‘manufacturer’ shall be construed accordingly.

The World Bank feels that the adoption of the Goods and Service Tax (GST), together with the removal of inter-state checkpoints, is the most important reform that can boost India’s manufacturing sector’s competitiveness.

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GST Registration with Vakilsearch

If you own a manufacturing firm and are concerned about the ramifications of GST registration. To complete your GST registration swiftly and efficiently, we strongly urge you to engage the services of Vakilsearch’s GST professionals. Further, our professionals can act as trustees in your GST registration process, ensuring that you receive your GSTIN swiftly by handling all tedious registration responsibilities on your behalf. Moreover, get in contact with Vakilsearch immediately to make stress-free GST registration a reality!

GST Registration for Manufacturing Unit – FAQs

.” image-0=”” headline-1=”h2″ question-1=”2. A registered person is a taxable food item manufacturer. His plant is situated in a rented space. Is this individual entitled to an ITC on the tax paid on the rental amount?” answer-1=”Yes, a registered individual who is the manufacturer of a taxable food item whose plan is located in a rental space is entitled to get ITC for the tax paid on the rental amount.” image-1=”” headline-2=”h2″ question-2=”3. A registered person is transporting semi-cooked meals from his Gurugram production facility to his Delhi branch. Is he obligated to pay any kind of tax?” answer-2=”Branches in different states are treated as separate taxable individuals. According to Schedule I, even if supplied without consideration, this represents a supply made in the conduct. Or advancement of commerce between different individuals. Hence, the registered individual must pay IGST because it is an inter-State supply.” image-2=”” headline-3=”h2″ question-3=”4. Is it necessary for a company to have different registrations for trading and manufacturing in the same state?” answer-3=”For all activities, an entity in each state will have just one registration.” image-3=”” count=”4″ html=”true” css_class=””]