State GST Refund

State GST Refund

Investment Subsidy in lieu of State GST Paid

State GST Refund

A Scheme of Department of Industry and Commerce of Haryana govt.

 Dear Businessman,

You will be surprised, if you come to know that you can recover your investment cost in lieu of State GST Payment.

Yes !

There is a Scheme named as “Investment Subsidy in lieu of State GST Paid” has notified by the State Govt of Haryana under “Haryana Enterprises and Employment Promotion Policy, 2020”.

Many times, being a businessman you have felt worried about GST Billing and Payment. But don’t worry about this. Under this scheme State Govt. will refund you up to 75% of Net SGST paid during the year.

Here important points is that you can take the benefits Maximum up to 150% of Fixed Capital Investment (FCI) in your business.  In other words you can get benefits of 1.5 times of your Investment.

So be aware at the time of framing Fixed Capital Investment. Because it is FCI that determined the maximum benefits, you can take.

For your kind information, here it is important to know the variant of FCI. “New Fixed Capital Investment” for the purpose of benefits means, Investment in :

• Land Underuse
• New Construction
• New Plant and machinery (including Generating Set), tools and equipment’s

To apply, Fill form- https://forms.gle/doBxnYuQ4TSn7N4n9

So, let’s know the main provision of this scheme.

1. Applicability:

This Scheme shall be applicable on the MSME Units which are come into operation on or after 01.01.2021. If any units is running before 01.01.2021 then such units can take benefits of this scheme only when if it has made additional investment in Plant and Machinery on or after 01.01.2021. Such investment in Plant and Machinery shall be 50% or more of the Original Investment in Plant & Machinery that was made at the time of Commencement of business of such MSME Units.

2. Basic Condition:

• Units must be registered under MSME and Haryana Udhyam Memorandum (HUM).
• Units must be regular in Commercial Production.
• Obtained Noc/CLU as applicable
• Unit should not be fall in the Restrictive List of Business as notified by the State Govt.

3. Pattern of Subsidy:

Amount of subsidy shall be determined as per your Block Category (business location) as notified by Department.

Pattern of Subsidy:

Example:

Let’s understand this scheme with an Example.

Suppose Mr. Devender Kumar has started the business of Manufacturing Bath Décor items in Barwala, Hisar.  

He has Commenced his business on 10^th April 2021.

He has invested :

(i) Rs. 50 Lacs in Land

(ii) Rs. 20 Lacs on Building Construction

(iii) And Rs. 50 Lacs on Plant & Machinery.

 

Accordingly, Total FCI (Fixed Capital Investment) is Rs. 1.20 Crores.

To apply, Fill form- https://forms.gle/doBxnYuQ4TSn7N4n9So, Mr. Devender has get back his total Investment in next 11 Years. He has get back the refund of State GST that he has need to pay.

Indirectly, it will increase your cash flow in business and you can meet out your other business expenses. Once you clear that whatever the state GST amount will need to pay, ultimately you will receive the refund of such amount. It will boost your local sales system.

Here important point is that whether in the 1^st year, Mr. Devender has not need to pay any GST but by filling the application he has ensured the Maximum Eligible Subsidy amount with the Department.

Now he can get the benefits in the coming years.

So you have started any business on or after 01.01.2021 then you should take the benefits of this scheme.

Last date for apply this subsidy is 30^th June 2022.

So, take the benefit of said scheme and expand your business with more Sales turnover.

To know more about eligibility criteria and filling of subsidy application, you can connect  with us at:

Jitender Kumar (90171-51780)

KIP Financial Consultancy Pvt. Ltd.

DSB – 38, KIP Complex, Red Square Market, Hisar