Rule 30 of CGST rules 2017

What constitutes Cost of Production?

Cost of production shall consist of the following:

Material consumed

Direct wages and salaries

Direct expenses

Works overheads

Quality control cost

Research and Development Costs incurred for development or improvement of the existing product

Packing Cost

Administrative overheads related to production

Products transferred/dispatched, duly packed for captive consumption(Captive consumption means the consumption of goods manufactured in another division of the same organization, or anything related thereto)

To derive cost of production of goods dispatched/used for captive consumption; adjustments for stock of Work-in-process, finished goods, recoveries of sales of scrap, wastage etc. shall be made. Material cost shall be net of discounts, input tax credit, GST (if any), etc

Very Nice Mr Rohit Tibrewal.,


@ Suryadeep.,

Yes... I agreed to Mr Rohit Tibrewal.,

Just will be calculated as "Material Cost + Production Cost)

Thank you 😀 @ Raja Sir

@ Thankyou sir Mr Rohit Tibrewal.