Net Vat/ Net SGST Reimbursement Scheme for Industries

This scheme was introduced to incentivize new investments in the state in the manufacturing sector. Under this scheme, the State Government provides incentives to attract increased investments to the state in the manufacturing sector to create more employment opportunities, for balanced regional growth and inclusive development.

This scheme shall be applicable to a new industrial undertaking, or an existing Industrial undertaking that undertakes expansion with an incentive period of 10 years

Category 1 Taluka

Eligible for 100% fixed capital Investment out of which 90% of Net VAT/ Net SGST is reimbursed

Category 2 Taluka

Eligible for 80% fixed capital Investment out of which 80% of Net VAT/ Net SGST is reimbursed

Category 3 Taluka

Eligible for 70% fixed capital Investment out of which 70% of Net VAT/ Net SGST is reimbursed

Ceiling for incentive:

  • Ultra Mega Industrial Unit: INR 500 Crore
  • Mega Industrial Unit: INR 400 Crore
  • Large Industrial Unit: INR 150 Crore
  • Micro, Small or Medium Industrial Unit: INR 50 Crore
Category of Taluka % of eligible fixed capital investment entitle for incentive % of Net VAT/ Net SGST Reimbursement to the unit % of Net VAT/ Net SGST to be paid to Government Incentive period (no. of years)
1 100 90 10 10
2 80 80 20 10
3 70 70 30 10

Note: Category of Talukas with details can be found in policy annexure

Net SGST to be considered for Reimbursement means that the eligible unit will be eligible to get reimbursement of SGST amount paid through cash ledger against the output liability of SGST on sale of eligible products

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