Investment Subsidy in Lieu of Net SGST | Haryana Textile Policy 2022-25 | Wealth Design LLP

Investment Subsidy in Lieu of Net SGST: Boosting Haryana's Textile Sector

The Investment Subsidy in Lieu of Net SGST under Haryana Aatma Nirbhar Textile Policy 2022–25 offers textile units significant tax relief by reimbursing a portion of net SGST paid. This incentive promotes fresh investments, expansions, and modernizations across micro to anchor units in the state.

Scheme Objectives and Assistance Levels

The policy aims to foster a competitive textile ecosystem through capital investment subsidies tied to net SGST contributions. Anchor units receive 40-50% reimbursement for 6-8 years, capped at 100-150% of fixed capital investment (FCI), while mega units get similar rates for 7-10 years. Other units, including those expanding or diversifying, qualify for 25-50% over 8-10 years, up to 100-125% of FCI.

Eligibility and Exclusions

Units must operate in notified textile value-chain activities, hold valid GST and URC/IEM registrations, and be in commercial production at disbursement. Compliance with GST laws is mandatory, excluding export/deemed export refunds and penal taxes from calculations.

Application Process and Documentation

Submit applications via the designated portal within three months of the financial year-end or scheme notification. Required documents include URC, GST returns, and CA-certified FCI details.

Disbursement, Appeals, and Compliance

The Directorate of MSME handles processing at district levels, with timelines for corrections and appeals to higher authorities. Late claims face restrictions, and false submissions lead to recovery, interest, penalties, and future disqualifications.

Wealth Design LLP's Expertise

Wealth Design LLP guides textile businesses in assessing eligibility, computing SGST investments, compiling documents, filing applications, and addressing queries. Their support ensures maximum subsidy realization for Haryana enterprises. Contact Wealth Design LLP.

Impact on Textile Growth

This subsidy reduces effective SGST burdens, spurring job creation, diversification, and modernization in Haryana's textile industry. Future enhancements could extend durations, increase caps, or broaden coverage to align with broader industrial programs.