Manufacturing units carry a heavier compliance load — factory and environmental licences, labour registrations and GST with input credits on raw materials.

This guide is a checklist for manufacturers.

Registrations you need

  • Business structure and GST registration
  • Udyam/MSME registration
  • Factory licence (if applicable)
  • EPF and ESI registration for workers

Licences and permits

  • Factory licence under the Factories Act (size-dependent)
  • Pollution control board consent (NOC)
  • Fire safety NOC

Taxes and returns

  • GST on sales with ITC on inputs and capital goods
  • E-way bills for goods movement
  • TDS and professional tax on payroll

Practical tips

  • Claim ITC on raw materials and capital goods
  • Keep environmental and factory licences current
  • Register for EPF/ESI once you cross the employee thresholds

Frequently asked questions

Do manufacturers need a factory licence?

Units meeting the worker/power thresholds under the Factories Act need a factory licence from the state.

Can manufacturers claim ITC on machinery?

Yes, input tax credit is available on capital goods used in manufacturing, subject to conditions.