Chhattisgarh Mandi Tax Exemption Scheme 2024
By Department of Industries, Government of Chhattisgarh
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Quick Answer
New MSME enterprises in agricultural & food processing and biofuel/ethanol sectors can claim 100% exemption from mandi tax for 5 years, up to ₹5 crore annually.
- Funding amount
- Up to ₹5Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Chhattisgarh
- Registrations needed
- Udyam registration
About this subsidy
The Chhattisgarh Mandi Tax Exemption Scheme, an integral part of the Chhattisgarh Industrial Development Policy 2024-30, offers significant financial relief to new Micro, Small, and Medium Enterprises (MSMEs) operating within the crucial agricultural & food processing and biofuel/ethanol sectors. This incentive aims to reduce the operational burden on these vital industries by exempting them from the mandi tax imposed on agricultural products. By doing so, the Government of Chhattisgarh seeks to foster growth, encourage new investments, and enhance the competitiveness of local enterprises in these strategic sectors. This exemption directly contributes to lowering input costs, thereby improving profitability and promoting a more vibrant agro-based industrial ecosystem within the state. It reflects the government's commitment to supporting sustainable industrial development and economic diversification, particularly in areas with high agricultural potential and emerging biofuel opportunities. The policy is designed to attract and retain businesses, encouraging them to establish and expand their operations in Chhattisgarh by mitigating a key financial overhead.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Benefits & Funding
- Amount
- Up to ₹5Cr
What You Get
This scheme provides a substantial financial benefit by offering 100% exemption from mandi tax levied on agricultural products. This exemption is available for a period of 5 years starting from the date of the enterprise's first purchase of raw materials. The maximum benefit an enterprise can claim under this scheme is capped at ₹5.00 Crore per year. Furthermore, the total cumulative exemption limit over the entire 5-year period will not surpass 75% of the Fixed Capital Investment made by the unit. This ensures that the incentive is aligned with the scale of investment, providing proportional support to eligible MSMEs. The benefit is designed to reduce the direct cost of raw material procurement, enhancing the economic viability of new ventures in the specified sectors within Chhattisgarh.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
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
What is the Chhattisgarh Mandi Tax Exemption Scheme?
This scheme, part of the Chhattisgarh Industrial Development Policy 2024-30, offers 100% exemption from mandi tax on agricultural products for new MSME enterprises in specific sectors for 5 years.
Which sectors are eligible for this exemption?
New MSME enterprises in the agricultural & food processing and biofuel/ethanol sectors are eligible.
What is the maximum benefit an enterprise can receive?
Enterprises can receive up to ₹5.00 Crore in exemption per year. The total exemption over 5 years cannot exceed 75% of the Fixed Capital Investment.
How long is the exemption valid?
The exemption is valid for 5 years from the date of the first purchase of raw materials.
What does 'Fixed Capital Investment' mean in this context?
Fixed Capital Investment generally refers to the total investment made by the enterprise in land, building, plant, machinery, and other fixed assets necessary for its operations. This figure is used to calculate the overall cap on the mandi tax exemption.
How can I apply for this exemption?
Applications are typically made to the state's Department of Industries or district industry centers, following the guidelines and procedures specified in the Chhattisgarh Industrial Development Policy 2024-30. Required documents usually include MSME registration, project reports, and proof of investment.
Is this exemption available to existing MSMEs?
No, the policy specifically states that it is for 'New MSME enterprises'.
