Bihar SC/ST Tax Reimbursement Grant
By Department of Industries, Government of Bihar
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Quick Answer
New industrial units established by SC/ST entrepreneurs in Bihar can claim up to 92% reimbursement on VAT/CST/Entry Tax, with limits based on project cost.
About this subsidy
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.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Department of Industries, Government of Bihar is the state department that owns the Bihar Start-up Policy 2022 and the Mukhyamantri Udyami Yojanas. It sits in Vikas Bhawan, part of the New Secretariat in Patna. Start-ups apply for the policy's schemes through the Startup…
Learn moreBenefits & Funding
What You Get
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.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Register Unit
Formally register the new industrial unit with the appropriate state authority.
You - 2
- 3
- 4
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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.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
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.
What kind of taxes are covered under this reimbursement?
The scheme covers 92% reimbursement against admitted VAT/CST/Entry Tax deposited in the account of the State Government. It specifically excludes any trading-related taxes.
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.
Sources
Data on this page is compiled from official program and provider references.
