Sarkari Yojana
Incentive Scheme for MSMEs in Powerloom Sector: Subsidy for State Goods and Services Tax (SGST)
About Incentive Scheme for MSMEs in Powerloom Sector: Subsidy for State Goods and Services Tax (SGST)
The “Subsidy for State Goods and Services Tax (SGST)” operates as a sub scheme within the “Incentive Scheme for MSMEs in Powerloom Sector”. Introduced on 1st January, 2022 by West Bengal’s Department of Micro, Small & Medium Enterprises and Textiles, it applies until 31st December, 2024. > Objective of the “Incentive Scheme for MSMEs in Powerloom Sector”:
Fiscal incentives are given to MSMEs in the Textile sector that set up New age shuttleless Powerlooms, in order to step up output of improved quality fabrics. The Scheme further aims at a sustainable ecosystem for these MSMEs in which resources are used to the fullest, new jobs are created and operations reach wider areas, so the State can lead the country in the Powerloom sector. > Objective of the “Subsidy for State Goods and Services Tax (SGST)” Sub-scheme:
For its approved project, an eligible micro, small and medium Powerloom enterprise is refunded the Net SGST it pays to the Government of West Bengal for 8 years counted from the start of commercial production.
Scheme Overview
State Government
Business Entity
01 Jan 2022
Scheme Details
Eligibility Requirements
To qualify for Incentive Scheme for MSMEs in Powerloom Sector: Subsidy for State Goods and Services Tax (SGST), applicants must satisfy the following conditions:
Broadly, the Scheme applies to all micro, small,…
Broadly, the Scheme applies to all micro, small, and medium enterprises (MSMEs) engaged in the powerloom sector.
Commencement of production has to be within 01.01.2022…
Commencement of production has to be within 01.01.2022 to 31.12.2024.
Enterprises need a signed Four-party agreement with the…
Enterprises need a signed Four-party agreement with the Directorate of Textiles, a Financial institution and Tantuja.
Units in the private, cooperative and joint sectors…
Units in the private, cooperative and joint sectors are eligible, along with companies/ undertakings the State Government owns and manages, and Industrial SHGs.
There must be a detailed feasibility report/project prepared…
There must be a detailed feasibility report/project prepared for the project.
The project has to be approved and sanctioned…
The project has to be approved and sanctioned by a Central Financial Institution or Commercial Banks or State Financial Institutions.
Benefits Provided
Incentive Scheme for MSMEs in Powerloom Sector: Subsidy for State Goods and Services Tax (SGST) provides the following benefits to eligible applicants:
Zone B & C:
A refund of 30% of the Net SGST paid, for 8 years from when commercial production begins.
Zone D & E:
A refund of 50% of the Net SGST paid, for 8 years from when commercial production begins. Note: Total SGST refunds cannot go beyond 75% of Fixed Capital Investment.
Documents Required
Applicants should keep the following documents ready before starting the application:
Partnership deed or Registrar of Companies-authenticated Memorandum of…
Partnership deed or Registrar of Companies-authenticated Memorandum of Association and Articles of Association (applicable cases).
Statement of the names and addresses of the…
Statement of the names and addresses of the Directors /Partners /Owners, or of Cooperative or Self Help Group Members, as the case may be.
Project report that has been approved
Project report that has been approved.
Financial institution/ bank letters for loan sanction and…
Financial institution/ bank letters for loan sanction and disbursement.
A copy of the agreement entered into
A copy of the agreement entered into.
Audited balance sheets for 2 previous years (applicable…
Audited balance sheets for 2 previous years (applicable cases).
Information on present manufacturing in West Bengal, giving…
Information on present manufacturing in West Bengal, giving items, annual approved capacity, and annual production in the last three years (in quantity and value in Rs. Lakh), in applicable cases.
Land deed in applicable cases; for rented /leasehold…
Land deed in applicable cases; for rented /leasehold land / buildings, the rent agreement with receipt /lease agreement.
Land/ building mutation & conversion certificate
Land/ building mutation & conversion certificate.
A valid WBPCB consent to operate certificate
A valid WBPCB consent to operate certificate.
Copies of SGST records
Copies of SGST records.
Copy of the unit's trade licence
Copy of the unit's trade licence.
Copy of the first bill for electricity (applicable…
Copy of the first bill for electricity (applicable cases)
Proof of Udyam Registration (acknowledgement copy)
Proof of Udyam Registration (acknowledgement copy)
Copy of SC / ST certificate in applicable…
Copy of SC / ST certificate in applicable cases.
Any additional statutory licences/certificates, if necessary
Any additional statutory licences/certificates, if necessary.
“Self declaration” as laid down in para 7.1(vi)…
“Self declaration” as laid down in para 7.1(vi) of the Official Scheme Guidelines .
Copy of the receipt for the SGST application…
Copy of the receipt for the SGST application filed with the Commissioner, Commercial Tax , West Bengal.
2022-01-01
How to Apply
Offline Application
Applicants can apply for Incentive Scheme for MSMEs in Powerloom Sector: Subsidy for State Goods and Services Tax (SGST) through the offline application process outlined below.
Application Process
At the end of every year, the eligible enterprise must apply in the prescribed FORM-E to the Commissioner of Commercial Taxes, West Bengal, asking for certification of the total SGST it paid (input credit excluded) on goods manufactured and sold during the year covered by the application. Time frame for submission of first Application: Within 12 months after commercial production has commenced (01.01.2022 to 31.12.2024). Address: THE COMMISSIONER, COMMERCIAL TAXES, DIRECTORATE OF COMMERCIAL TAXES 14, BELIAGHATA ROAD, KOLKATA-700015
Exclusions / Who Is Not Eligible
- Enterprises registered and for which eligibility certificates have been issued/ incentives have been sanctioned and/ or disbursed under the respective Incentive Scheme of the State.
- Enterprises registered and for which eligibility certificate have been issued in terms of the respective Incentive Scheme of the State but no sanction or disbursement of incentive has been made.
- Enterprises commenced production before 31.12.2021 and applied for incentive under the respective Incentive Scheme of the State within the stipulated date (The claim will be governed by the respective Incentive Scheme of the State).