Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector: Net SGST Reimbursement
80–100% net SGST reimbursement for 10 years · large industries & thrust sector Gujarat
Large manufacturing units in Gujarat can reclaim 80–100% of their Net State GST (SGST) paid on manufactured goods sold, for up to 10 years. The exact percentage and annual cap depend on the taluka category and whether the unit is in a general or thrust sector. Apply online via the Investor Facilitation Portal at ifp.gujarat.gov.in.
About This Scheme
Large manufacturing units in Gujarat can reclaim 80–100% of their Net State GST (SGST) paid on manufactured goods sold, for up to 10 years. The exact percentage and annual cap depend on the taluka category and whether the unit is in a general or thrust sector. Apply online via the Investor Facilitation Portal at ifp.gujarat.gov.in.
Full official description
The "Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state's dynamic large-industry sector, which significantly contributes to employment, GDP, and exports. Effective from October 5, 2022, to October 4, 2027, this initiative supports growth, investments, and the vision of "Aatmanirbhar Gujarat" and "Aatmanirbhar Bharat." The component "Net SGST Reimbursement" is designed to incentivize large industrial undertakings by reimbursing a portion of their SGST for a specific period (10 years), based on the category of their taluka and sector.
Benefits
- Category 1 talukas: 100% of net SGST for 10 years, capped at 7.5% (general) or 8% (thrust sector) of eFCI per annum
- Category 2 talukas: 90% of net SGST for 10 years, capped at 6.5% (general) or 7% (thrust sector) of eFCI per annum
- Category 3 talukas: 80% of net SGST for 10 years, capped at 5% (general) or 5.5% (thrust sector) of eFCI per annum
💡 Why Startups Should Care
Category 1 taluka thrust-sector units get 100% SGST reimbursement — a strong signal that Gujarat wants specific industries in specific locations. If your large manufacturing project qualifies for thrust-sector status, this scheme materially reduces your ongoing tax burden for a decade.
Who Can Apply (Eligibility)
- Must be a new large industrial undertaking, or an existing one undergoing expansion or diversification
- Must have DPIIT acknowledgment/registration
- Must commence commercial production during the scheme's operative period (Oct 2022 – Oct 2027)
- Must have a separate GST registration for the eligible manufacturing unit
- Must comply with SGST guidelines and accurately report sales
- Only goods manufactured in the approved premises qualify
Exclusions
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
- Log in and select the Net SGST Reimbursement component.
- Fill in enterprise and GST registration details.
- Upload registration, Eligibility Certificates, and GST returns with annexures.
- Submit annually for reimbursement after GST filing.
Frequently Asked Questions
What is the "Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector"?
The "Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector" is a state initiative designed to support and strengthen the Large Industry and Thrust sector in Gujarat. It aims to enhance growth, encourage investments, and contribute to the vision of self-reliant Gujarat and India.
When is the scheme operative?
The scheme is operative from October 5, 2022, to October 4, 2027, covering a period of 5 years.
What are the objectives of the scheme?
The scheme aims to boost Large Industry growth, enhance the industrial ecosystem, encourage investments, and contribute to Gujarat's and India's self-reliance vision.
Who is eligible to benefit from the scheme?
Large Industries established and operating within Gujarat are eligible to benefit from the scheme, as per the criteria defined in the policy framework.
What is "Net SGST Reimbursement" component?
Net SGST Reimbursement is a financial incentive provided to eligible large industrial undertakings for the reimbursement of State Goods and Services Tax (SGST) paid on eligible goods they manufacture.
How long will a business receive SGST reimbursement?
A business can receive SGST reimbursement for a period of 10 years, starting from the date of commencement of commercial production.
How is the SGST reimbursement amount calculated?
The SGST reimbursement amount is calculated based on the taluka category of the project and the ceiling percentage of the eligible financial cost (eFCl) for the sector in which the business operates.
What is the maximum SGST reimbursement percentage a business can claim?
Depending on the taluka category and the sector, businesses may claim up to 100% reimbursement of SGST, with varying percentages based on specific criteria.
How often is SGST reimbursement disbursed?
SGST reimbursement is disbursed on a quarterly basis to eligible businesses.
What happens if a business misreports its sales?
If a business misreports sales, its eligibility certificate may be canceled, and the business will be required to return the incentives received, along with interest at the rate of 18% per annum.
Can a business apply for SGST reimbursement if it also engages in trading activities?
No, businesses that engage in trading activities must obtain a separate GST registration for manufacturing in order to apply for SGST reimbursement.
Is there a limit on how much SGST reimbursement a business can claim?
Yes, the reimbursement is subject to specific ceiling limits based on the taluka category and eligible financial cost (eFCl) for the sector.
Does each industrial project need a separate GST registration?
Yes, each industrial project must have a separate GST registration if it is applying for SGST reimbursement under the scheme.
Can a business claim SGST reimbursement for resold goods?
No, SGST reimbursement is only applicable to goods that are manufactured within the premises of the business, not for goods that are resold.
What role does a Chartered Accountant play in the SGST reimbursement process?
A Chartered Accountant is responsible for certifying the business's books of accounts and ensuring that the business is in compliance with the SGST reimbursement guidelines.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Registration under the scheme
- Provisional Eligibility Certificate under the scheme
- Final Eligibility Certificate under the scheme
- GST registration with all annexures
- Certificate as prescribed