SGST Refund Subsidy Scheme
SGST Refund Subsidy Scheme
SGST Refund Subsidy Scheme
The "Investment Subsidy in lieu of Net SGST" under the Haryana Enterprises & Employment Policy‑2020 reduces the effective tax burden for new and expanding units in Haryana. By reimbursing a portion of the net SGST paid, the scheme makes the state more attractive for investment and industrial expansion. It covers a broad spectrum of units—from MSMEs and startups to large, mega, and ultra‑mega projects.
Scheme Overview and Quantum
The scheme provides an investment subsidy as a percentage of net SGST, typically ranging from about 30% to 100% for defined periods. Overall caps range between 100% and 150% of new fixed capital investment, depending on the enterprise category (MSME, Large, Mega) and location (Block B, C, D). Special packages exist for priority sectors, clusters, startups, and thrust sectors to push investment into less‑developed blocks.
Eligibility and Conditions
- Eligible Units: New and expansion/diversification projects that have taken term loans.
- Timeline: Must have commenced commercial production on or after 1 January 2021.
- Compliance: Must possess Udyam registration, GST registration, and comply with environmental/state norms.
- Exclusions: Units must not fall under the state’s negative/restrictive list.
- Maintenance: Must maintain proper accounts and proof of fresh fixed capital investment.
Application, Documentation, and Processing
- Application Window: Generally within three months from the close of the financial year for which reimbursement is claimed.
- Key Documents: Udyam Registration Certificate, GST returns, and detailed fixed‑capital investment records.
- Processing: Applications are scrutinized by the District Industries Centre/MSME Centre, which may inspect the unit to verify investment and operations.
Authorities, Appeals, and Penalties
The Haryana Enterprises Promotion Board, Director/Director General of Industries & Commerce, and senior MSME officers act as competent authorities. The framework includes an appeal mechanism. False or ineligible claims can lead to withdrawal of benefits and recovery with interest, reinforcing transparency and compliance.