Arunachal VAT Exemption 2025
By Department of Industries, Government of Arunachal Pradesh
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Quick Answer
Eligible new or expanding industrial units in Arunachal Pradesh get a 99% sales tax (VAT) exemption for seven years.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Arunachal Pradesh
About this subsidy
Clause 7.8 of the Arunachal Pradesh Industrial Development and Investment Policy, 2025 provides a 99% Sales Tax (VAT) exemption to eligible industrial units for a period of seven years from the date of commencement of commercial production.
It applies to eligible new units and to units undertaking substantial expansion. Unlike the policy's reimbursement incentives, this is a standing exemption rather than a cash claim — the saving shows up as tax the unit does not pay across the seven-year window, so its value scales with turnover.
Eligibility
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Subsidy providers
Provider
Department of Industries, Government of Arunachal PradeshItanagar · Arunachal Pradesh · India
The Department of Industries, Government of Arunachal Pradesh, is the state government's department for industrial development, based in Itanagar. Its main offer to founders is the Arunachal Pradesh Industrial Development and Investment Policy, 2025, a set of subsidies,…
Learn moreBenefits & Funding
What You Get
The State Government exempts 99% of Sales Tax (VAT) for eligible industrial units for seven years counted from the date commercial production starts. There is no rupee ceiling in the clause — the benefit is proportional to the unit's taxable sales over those seven years, which makes it one of the larger incentives in the policy for a high-turnover manufacturer. Units undertaking substantial expansion are covered alongside new units.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Establish eligibility
Get the unit certified as an eligible new unit or substantial expansion under the 2025 policy.
You - 2
- 3
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
How large is the exemption?
99% of Sales Tax (VAT).
How long does it last?
Seven years from the date of commencement of commercial production.
Does an expansion qualify?
Yes — eligible New Units and units undertaking substantial expansion are both covered.
Is there a monetary cap?
The policy clause states no rupee cap; the benefit is the tax foregone over the seven-year period.
Sources
Data on this page is compiled from official program and provider references.
