Subsidy or reimbursement

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 forNew MSMEs in Telangana that manufacture goods and pay State GST.
StageEarly revenue – Growth
Duration5 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

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