Net SGST Reimbursement
A programme by Commissionerate of Industries, Government of Telangana
Pays back the net State GST a unit pays on what it makes, for a fixed period or until its eligible investment is recovered, whichever comes first.
At a glance
| Best for | New MSMEs in Telangana that manufacture goods and pay State GST. |
|---|---|
| Stage | Early revenue – Growth |
| Duration | 5 years for micro and small units, 7 years for medium units, or until eligible investment is recovered |
About Net SGST Reimbursement
This returns the net State GST (SGST) you pay, for a set number of years from the start of commercial production or until the eligible fixed capital investment has been recovered, whichever is earlier.
What you get
- Micro and small enterprises: reimbursement of the full net SGST for five years
- Medium enterprises: reimbursement of a smaller share of net SGST, for seven years
Who can apply
- A micro, small or medium enterprise in Telangana, set up or expanded under the MSME Policy 2024
- Located outside Greater Hyderabad Municipal Corporation limits, with exceptions set out in the guidelines
- Benefits are counted from the date the unit starts commercial production, and the scheme runs from 18 September 2024 to 31 March 2029
How selection works: The General Manager of the District Industries Centre verifies the documents and inspects the unit. For larger investments in plant and machinery, the General Manager recommends the claim to the Commissioner of Industries for sanction. Payment comes after the spend, not before.
How to apply: File the incentive claim on the TG-iPASS portal, which handles the claim online from start to finish. Questions go to coi.inds@telangana.gov.in.
Where to apply
Other Commissionerate of Industries, Government of Telangana programmes
- Stamp Duty and Transfer Duty ReimbursementPays back the stamp duty and transfer duty an eligible MSME paid when it bought land for industrial use.
- Land Cost and Land Conversion Charges ReimbursementPays back a share of the land cost in industrial estates and parks, and of the charge for converting agricultural land to industrial use.
- Power Cost ReimbursementReimburses fixed power consumption charges at a set rate per unit for five years from the start of commercial production.
- Investment Subsidy for Micro and Small EnterprisesPays back a share of eligible fixed capital investment as a capped subsidy for General-category micro and small enterprises.
- Additional Investment Subsidy for Women-Owned EnterprisesAn extra investment subsidy, on top of the general one, for micro and small enterprises set up by women entrepreneurs.
- Enhanced Capital Investment Subsidy for SC, ST and PwD EntrepreneursA higher-rate capital investment subsidy for micro and small enterprises set up by SC, ST or PwD entrepreneurs, with separate schedules for manufacturing and services.
- Pavala Vaddi Interest SubsidyReimburses part of the interest on a term loan taken for eligible fixed capital investment, for five years.
- Skill Upgradation and Training ReimbursementPays back part of what a unit spent training local manpower, as a one-time facility with a cap per person.
- Quality Certification, ZED and Patent Registration SubsidyPays back the cost of a quality certification, ZED certification or patent registration, up to a cap per item.
- Cleaner Production SubsidyPays back part of the cost of specific cleaner-production measures at the unit, up to a cap.
- Industrial Infrastructure Development Fund (IIDF) ContributionThe state pays part of the cost of bringing roads, power and water to the doorstep of a standalone unit.
Everything about Commissionerate of Industries, Government of Telangana