SGST Subsidy Scheme in Punjab
Dear Businessman / Investors
The Punjab Government has announced a new scheme to support businesses. This scheme offers a refund of State Goods and Services Tax (SGST) to registered Micro, Small, and Medium Enterprises (MSMEs),Large units Thrust Sectors. The refund aims to help these businesses by reducing their tax burden, making it easier for them to operate and grow.
The Punjab Government’s SGST Subsidy Scheme is applicable for a period of 5 years.
The Fiscal Incentives For Different Types Of Units:
- For MSME Units: Businesses can get a refund of 100% of the State Goods and Services Tax (SGST) they pay on sales within the state for 7 years after they start production. This refund is capped at 100% of the Fixed Capital Investment (FCI) they make.
- For Large Units: Similar to MSMEs, large businesses can get a refund of 75% of the SGST they pay on sales within the state for 7 years after they start production. The refund is capped at 100% of the FCI.
- For Units in Thrust Sectors: Businesses in certain priority sectors can get a refund of 100% of the SGST they pay on sales within the state for 10 years after they start production. The refund is capped at 125% of the FCI.
For New Units: A new unit can be set up at a new location with a separate VAT/GST registration. If an existing business sets up a new unit at the same location but in a separate building with a different VAT/GST number, it can also be considered for incentives.
How to Apply :
Businesses need to apply using the prescribed form for the SGST Subsidy. They must submit this application along with the required documents on the department’s web portal within 12 months after the end of the financial year. The department will verify the details of the SGST paid and the incentive eligibility.
For, more information you are requested to contact our KIP subsidy helpline on Mail – sales@kipfinancial.com and contact Number – +918683898080 , +919350068318
KIP Financial Consultancy Pvt. Ltd.
DSB – 38, Red Square Market, Hisar – 125001 (HR)
Leave a Comment