Who is eligible for this reimbursement scheme?

This scheme is exclusively for new industrial units established by entrepreneurs belonging to Scheduled Caste (SC) and Scheduled Tribe (ST) communities in Bihar.

Is there a maximum limit on the reimbursement amount?

Yes, there is a maximum limit. For non-priority sectors, the reimbursement is capped at 80.5% of the approved project cost. For priority sectors, the cap is higher at 115% of the approved project cost.

What is considered a "new unit"?

A "new unit" typically refers to an industrial enterprise that has been recently established and commenced commercial operations as defined by the Bihar Industrial Investment Promotion Policy-2016. Specific definitions might be available in the detailed policy document.

How does one apply for this reimbursement?

Applications are made under the framework of the Bihar Industrial Investment Promotion Policy-2016. Entrepreneurs need to submit required documents and forms to the Department of Industries, Government of Bihar, following the procedures outlined in the policy.

Is the reimbursement provided as a lump sum or in installments?

The policy document does not specify the disbursement schedule, but typically, reimbursements for taxes are processed as a lump sum upon approval of the claim, or in tranches if the claim is substantial and linked to multiple tax periods.

Bihar SC/ST Tax Reimbursement Grant (2026)

The VAT/CST/Entry Tax Reimbursement scheme, a key initiative under the Bihar Industrial Investment Promotion Policy-2016, is designed to bolster new industrial units established by Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs in Bihar. This policy provides crucial financial incentives by offering substantial reimbursement against various state taxes, effectively lowering the financial burden on emerging businesses. By mitigating the impact of tax liabilities, the program aims to stimulate industrial growth, foster a robust entrepreneurial ecosystem for SC/ST individuals, and drive inclusive economic development across the state. This strategic support not only enhances the competitiveness and sustainability of new enterprises but also aligns with the state's broader vision of promoting social equity and economic empowerment through industrialization. It serves as a testament to Bihar's commitment to supporting diverse entrepreneurship and attracting investment that contributes to comprehensive regional prosperity.

This program provides a significant financial boost to new industrial units established by SC/ST entrepreneurs through tax reimbursement. Eligible units can avail of a 92% reimbursement against the admitted VAT/CST/Entry Tax deposited in the account of the State Government, strictly excluding any trading-related taxes. The maximum reimbursement limit is defined based on the sector: for non-priority sectors, it is 80.5% of the approved project cost, while for priority sectors, it can go up to 115% of the approved project cost. This direct cash benefit helps offset initial setup and operational costs, improving financial viability and promoting sustained growth for businesses led by SC/ST entrepreneurs in Bihar.

Bihar SC/ST Tax Reimbursement Grant

Bihar SC/ST Tax Reimbursement Grant

Subsidy providers

Application Process

How to apply

Program templates & documents

Sources

Webinars

DeepTech Grants in India 2026

Can Your Startup Win Grants?

Introduction to Grants, Subsidies and Incentives

Grants closing soon

Subsidies

Debt programs

Competitions closing soon

Equity closing soon

Frequently Asked Questions

About this subsidy

Eligibility

Timelines & Process

Benefits & Funding

Webinars

DeepTech Grants in India 2026

Can Your Startup Win Grants?

Introduction to Grants, Subsidies and Incentives

Grants closing soon

Subsidies

Debt programs

Competitions closing soon

Equity closing soon

Startup Software Credits

Warp

Higgsfield

Replit

Notion

Manus

Hostinger

Semrush

Reclaim.ai

Bolt

Huawei

Microsoft

Google