Rubber Board Licence for Dealers, Processors and Manufacturers
If you buy, sell, process or use natural rubber in your business, the Rubber Act, 1947 requires a licence from the Rubber Board. Dealers, processors and manufacturers each have their own licence form and their own monthly returns. We prepare the application, file it with the Board and keep your returns on time.
What it is
A Rubber Board licence is permission from the Rubber Board, Kottayam, to deal in natural rubber. The Board is a statutory body under the Ministry of Commerce and Industry, set up under Section 4 of the Rubber Act, 1947. Section 14 of the Act lets the Board issue general or special licences for acquiring and dealing in rubber.
Section 16 is the reason the licence matters. It says no person, other than the owner or occupant of a rubber estate or someone who acquired the rubber under a Board licence, may have rubber in their possession. The detailed procedure is in the Rubber Rules, 1955: Rule 39 for dealers, Rule 39A for processors and Rule 40 for manufacturers.
The Rubber Act, 1947 and the Rubber Rules, 1955 are the law in force for these licences today.
Who it applies to
You buy and sell rubber
Anyone, other than a processor, who buys, sells or otherwise deals in rubber needs a dealer’s licence. You apply in Form B and the Board issues the licence in Form C.
You process latex or raw rubber
Units that process natural rubber, such as crumb rubber and latex concentrate plants, apply in Form B1 for a processor’s licence, issued in Form C1.
You make products from rubber
Factories that acquire natural rubber to make tyres, tubes, footwear, gloves, hoses, belting or moulded parts apply in Form D. Think of a Faridabad auto-component unit that moulds rubber bushes and seals for vehicle makers. The licence comes in Form E and states the quantity by grade.
Why it matters
Possession without a licence is an offence
Under Section 16(1), you cannot hold rubber you have not lawfully acquired under a licence. A court can order the stock forfeited to the Government under Section 16(2).
Your stock has a paper trail
Monthly returns under Rule 43 record what you acquired, used and sold. That record backs up every kilo sitting in your godown.
The Board can inspect your stock
The Board’s officers can inspect rubber bought or sold by a dealer or processor at the factory or premises.
Documents required
About the business
- PAN and GST registration certificate
- Proof of constitution: partnership deed, LLP agreement or certificate of incorporation
- Details of the proprietor, partners or directors
About the premises
- Ownership deed or rent agreement for the godown or factory
- Address and layout of the place where rubber will be stored
- Factory licence and pollution board consent, if your unit already holds them
Licence-specific papers
- Processors: project report for a unit yet to be set up, plus details of raw material sources and technical know-how
- Manufacturers: products made and the grades and quantity of rubber needed in a year
- Dealers: expected trading volume and sources of supply
How it works
Work out which licence you need
A trader needs a dealer’s licence. A unit that processes latex or scrap into a marketable form needs a processor’s licence. A factory that consumes rubber needs a manufacturer’s licence. Some businesses need two. Say a moulding unit starts selling its surplus sheet rubber to other factories: it is now dealing as well as manufacturing, and we look at whether a dealer’s licence is also needed.
Prepare the application in the right form
We fill Form B, B1 or D, attach the documents and, for a new processing unit, put together the project report the Board asks for.
File with the Rubber Board and pay the fee
The application goes to the Rubber Board with the fee prescribed under Rule 45. We track it with the Board’s licensing department.
Answer the Board’s checks
For processors, the Board looks at the suitability of the applicant and the site, availability of raw material, technical know-how and economic feasibility. We prepare replies and arrange any papers asked for.
Receive the licence and start monthly returns
Once issued, the licence is not transferable. From the first month, we file your stock returns. In practice, we reconcile them with your purchase register and books of account so the numbers the Board sees match your GST data.
Dealer, processor and manufacturer licences compared
| Dealer | Processor | Manufacturer | |
|---|---|---|---|
| Rule | Rule 39 | Rule 39A | Rule 40 |
| Application form | Form B | Form B1 | Form D |
| Licence form | Form C | Form C1 | Form E |
| Monthly return | Forms H2 and L, by the 15th of the next month | Forms H3 and L1 | Forms K and L, by the 20th of the next month, plus annual Form K1 |
| Fee under Rule 45 | ₹1,000 a year | ₹1,000 a year | ₹500 (100 kg to 4,000 kg) or ₹1,000 (above 4 tonnes) a year |
Fees are as set out in Rule 45 of the Rubber Rules, 1955. We confirm the current amount with the Board before you pay.
Timelines
Get the licence before your first purchase
Section 16 bars possession of rubber acquired without a licence. Here is the catch: a factory that orders its first lot of rubber before the licence arrives is already in breach.
File stock returns every month
Dealers file Forms H2 and L by the 15th of the following month. Manufacturers file Forms K and L by the 20th. Processors file Forms H3 and L1 monthly.
Pay the yearly fee and file Form K1
Licences carry a validity period and the Rule 45 fee is charged per year. Manufacturers also file the annual Form K1 on rubber consumption.
What happens if you deal in rubber without a licence
Your stock can be forfeited
Under Section 16(2), a court trying a contravention can order the rubber forfeited to the Government, in addition to the penalty under Section 26.
Your licence can be cancelled
Rule 42 lets the Board revoke or cancel a licence for misrepresentation or breach of the rules, after giving you a reasonable opportunity to be heard.
Missed returns raise flags
Returns under Rule 43 are due every month. A run of missing returns is the kind of breach that can lead to action under Rule 42.
Frequently asked questions
Who needs a Rubber Board licence?
Anyone who buys, sells, processes or uses natural rubber in business, other than a rubber estate owner dealing with their own produce. Section 16 of the Rubber Act, 1947 bars possession of rubber unless you own or occupy an estate or acquired it under a Board licence. Traders take a dealer’s licence, processing units a processor’s licence and factories a manufacturer’s licence. We help you pick the right one at the start.
What is the difference between a dealer’s and a processor’s licence?
A dealer buys and sells rubber; a processor turns it into a processed form. Dealers apply under Rule 39 in Form B and receive Form C. Processors apply under Rule 39A in Form B1 and receive Form C1, and the Board also checks the site, raw material, know-how and economic feasibility. If you do both, talk to us first and we will map out what the Board expects.
Does a factory that makes rubber products need a licence?
Yes, if it acquires natural rubber. Rule 40 of the Rubber Rules, 1955 requires a manufacturer’s licence, applied for in Form D and issued in Form E. The licence states the quantities you may acquire, grade by grade. So estimate your yearly need properly when you apply. We work it out from your production plan.
What is the licence fee?
Rule 45 of the Rubber Rules, 1955 sets ₹1,000 a year for a dealer’s licence and ₹1,000 a year for a processor’s licence. A manufacturer pays ₹500 a year for 100 kg to 4,000 kg of rubber and ₹1,000 above 4 tonnes. We confirm the current fee with the Board before you pay, so there are no surprises.
What returns does a licence holder file?
Monthly stock returns under Rule 43. Dealers file Forms H2 and L by the 15th of the next month. Manufacturers file Forms K and L by the 20th of the next month and an annual Form K1 on consumption. Processors file Forms H3 and L1 every month. We can keep these on a fixed calendar alongside your GST returns.
Can I transfer my Rubber Board licence to a new owner?
No. The Rubber Rules state that dealer, processor and manufacturer licences are not transferable. If the business is sold, or a proprietorship becomes a company, the new entity applies for its own licence. Plan this before the change takes effect and you avoid a gap in which you would hold rubber without a licence.
Can the Rubber Board cancel a licence?
Yes. Under Rule 42, the Board can revoke or cancel a licence if it finds misrepresentation in the application or a breach of the Act or Rules. It must first give you a reasonable opportunity to be heard. Accurate applications and regular returns are the best protection, and we help draft a reply if a notice ever arrives.
Is the Rubber Act, 1947 still in force?
Yes. As of October 2026, Rubber Board licences are still granted under Section 14 of the Rubber Act, 1947 and the Rubber Rules, 1955. No replacement law has taken effect, so your licence, your monthly returns and the Rule 45 fees all run under the 1947 framework. If a new law does come in, we will tell our licence-holding clients what they need to do.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Government licence fees under Rule 45 of the Rubber Rules, 1955: ₹1,000 a year for a dealer or processor; ₹500 a year for a manufacturer acquiring 100 kg to 4,000 kg, and ₹1,000 a year above 4 tonnes.
Ready to begin?
Tell us whether you trade, process or consume rubber, and we will file the right Rubber Board licence and set up your monthly returns.