Manufacturing Sector Accounting in Delhi

Delhi's manufacturing story is written by small, export-oriented MSMEs and high-volume, small-batch job-shops. An Okhla garment or engineering exporter ships zero-rated under a LUT and needs every order costed to the rupee. A Mayapuri trader-cum-manufacturer in auto spare parts and metal works juggles scrap, freight, and unregistered purchases that pull in reverse charge. A Bawana plastics or light-engineering unit, in the city's largest industrial hub, runs back-to-back job orders on margins too thin for guesswork. Explore our national Manufacturing Sector Accounting service.

Patron Accounting's Delhi CA team builds the cost and compliance backbone these units need: BOM and per-job costing, WIP and AS 2 inventory valuation, GST reverse charge and e-Way Bill on inter-state movement, and LUT handling for exporters. For day-to-day books alongside this, see our Accounting Services. This page is reviewed quarterly for accuracy.

Any Delhi unit that converts raw material into finished goods, ships inter-state or for export, or carries inventory across a period-end needs cost-led manufacturing accounting.

• Garment and Engineering Exporters (Okhla) - Export under LUT on zero-rated supply; need per-order BOM costing and tight WIP tracking on thin margins.
• Auto-Parts and Metal Units (Mayapuri) - Traders-cum-manufacturers in spares, metal works, and recycling facing reverse charge on scrap and freight.
• Plastics, FMCG, and Light Engineering (Bawana) - High-volume job-shops in Delhi's largest industrial hub running back-to-back small-batch orders.
• Job-Workers and Subcontractors (Narela/Naraina) - Inter-state job-work movement needing e-Way Bills regardless of value and ITC-04 returns.
• Companies Facing Tax or Statutory Audit - Units crossing the Section 44AB threshold requiring AS 2 stock valuation and a clean fixed-asset register.
• Importer-Manufacturers - Units claiming IGST credit on imports and reconciling customs data with the books before filing.

Need ongoing returns alongside this? See GST Return Filing and Income Tax Return Filing across India.

• Bill of Materials and Product Specs - Component and labour breakdown for each finished item
• Purchase and Sales Invoices - Including e-invoices, scrap sales, and credit/debit notes
• GST Registration Certificate - GSTIN for each registration
• LUT and Export Documents - Letter of Undertaking, shipping bills, and BRC for Okhla exporters
• Stock and Production Registers - Raw material, WIP, and finished goods movement records
• e-Way Bills and Job-Work Challans - For inter-state dispatch and goods sent to job-workers
• Fixed-Asset and Plant Records - Purchase bills and useful-life details for plant and machinery
• Payroll and Wage Registers - Factory labour records, with TDS, PF, and ESI details
• Existing Accounting File - Tally, Zoho Books, SAP B1, or QuickBooks data, if any
• PAN of the Business Entity

Turnaround depends on product range and document readiness. Okhla exporters with clean BOM data are configured fastest; Mayapuri trader-cum-manufacturer units with mixed streams take a little longer.

For audit tied to your accounts, see Tax Audit in Delhi and our national Statutory Audit service.

AS 2 (ICAI), Inventory Valuation: Inventory is carried at the lower of cost or net realisable value. Cost is direct materials plus direct labour plus a share of manufacturing overhead at normal capacity, and excludes borrowing cost.

CGST Act 2017, Section 9(3) and 9(4) (RCM): Reverse charge applies to notified supplies and certain unregistered purchases. Tax is paid in cash via challan first, then claimed as input tax credit, and reported in GSTR-3B Table 3.1(d) and Table 4.

CGST Act 2017, Section 68 and Rule 138 (e-Way Bill): Mandatory above a consignment value of INR 50,000; for inter-state job-work movement it is required regardless of value. Job-work is reported in FORM GST ITC-04.

Companies Act 2013, Section 128 and Schedule II: Companies must keep proper books; plant and machinery is depreciated on the useful-life basis under Schedule II. For Delhi companies, filings route through RoC Delhi under the MCA.

Income Tax Act, Section 44AB and block-of-assets: Tax audit applies above the prescribed turnover, and depreciation for tax is computed on a written-down-value basis by block of assets. Note that Delhi levies no state profession tax, unlike Maharashtra.

Authority reference: GST Portal (gst.gov.in).

Job costing or process costing for my unit? One-off Okhla export orders suit job costing; continuous Bawana production suits process costing with each process as a cost centre. Patron picks the right fit.

Do exporters pay GST on shipments? No, exports are zero-rated. With a LUT in place you supply without paying IGST upfront, which protects working capital on thin margins.

What is excluded from inventory cost under AS 2? Borrowing cost and abnormal waste are excluded; only normal-capacity overhead, direct materials, and direct labour are absorbed.

What do I get each month? Costed jobs, AS 2 stock valuation, filed GST returns with RCM, e-Way Bills, and plant-wise product P and L.

For a Delhi MSME exporter or metal unit, margins are won or lost in the costing. Whether you run an Okhla garment or engineering export line, a Mayapuri auto-parts and metal works, or a Bawana plastics job-shop, Patron Accounting's CA-supervised manufacturing accounting builds BOM cost sheets, values WIP and inventory under AS 2, and keeps GST reverse charge, e-Way Bill, LUT, and ITC-04 compliant from INR 3,499/mo.

Explore the national Manufacturing Sector Accounting page, then add ongoing Accounting Services. Patron Accounting LLP serves 10,000+ businesses with a 4.9 Google rating.