“Scheme for Incentive to all Industries”
1. Name of the Scheme
Scheme for financial assistance by way of Net VAT / GST Reimbursement to MSMEs, Large, Mega & Ultra Mega Industrial Undertakings
2. Objective:
To attract increased investments to the state in the manufacturing sector to create more employment opportunities, for balanced regional growth and inclusive development of the state.
3. Operative period :
The scheme of incentive has come into force from 25/07/2016 and will remain in force for a period of five years, i.e. 24/07/2021.
4. Who will be eligible?
This scheme shall be applicable to a new industrial Undertaking, or an existing Industrial undertaking that undertakes expansion, and which commences the commercial production during the operative period of the scheme (i.e. between 25/07/2016 to 24/07/2021)
5. Pattern of assistance :
The percentage of eligible fixed capital investment entitled for incentive, the percentage of net VAT for reimbursement, and the period from the date of availment of incentive shall be as prescribed in the
table below:
| Category Of Taluka | % of eligible fixed capital investment entitle for incentive | % of Net VAT Reimbursement to the unit | % of Net VAT to be paid to Government | Incentive period (no. of years) |
| 1 | 100% | 90% | 10% | 10 |
| 2 | 80% | 80% | 20% | 10 |
| 3 | 70% | 70% | 30% | 10 |
6. General condition for availing Incentive :
An industrial undertaking eligible for reimbursement of Net VAT shall be considered as a normal dealer under the Gujarat Value Added Tax Act, 2003 and the rules made there under. The incentive shall be available in the form of reimbursement only.
The eligible industrial undertaking shall manufacture the goods on its own for which it is eligible for incentive. The eligible industrial undertaking shall remain in production during the incentive period. The eligible industrial undertaking shall have to make e-payment and submit e-returns.
Net VAT reimbursement in GST Regime:
Necessary modifications will be made in order to maintain the same quantum of incentives as available under the existing VAT regime, subject to conditions as may be decided by the state government, and the decision of the state government shall be final. The industrial undertaking shall be reimbursed the eligible incentive up to the extent of the State GST paid on intra-state sale, subject to the tax actually realized in the government treasury, within the overall ceiling of eligible amount and period. The incentives granted under the scheme shall be subject to the following conditions. In case of any breach of one or more of these conditions, the incentives given under the scheme shall be liable to be recovered as an arrear of land revenue or in any other appropriate manner the government may deem fit.
An industrial undertaking that has availed incentive under the scheme shall be required to employ persons domiciled in Gujarat to the extent of at least 85% of its total number of employees. The employment of persons domiciled in Gujarat in managerial and supervisory capacity shall not be less than 60% of the number of persons employed by the enterprise in managerial and supervisory capacity, subject to the requirement of employing at least 85% of the total number of employees from persons domiciled in Gujarat.
The industrial undertaking shall be required to submit a list of persons employed and such other information required for verification of having satisfied this condition, before the sanction of incentives under the scheme.
An industrial undertaking that has availed similar incentive as provided under this scheme under any other scheme of the state government shall not be eligible for the incentive under this scheme. However, the industrial undertaking may avail similar incentives under a scheme of the central government.
Any investment made by an existing industrial undertaking for renovation, modernization, rehabilitation, or rationalization will not be eligible for incentive under this resolution.
An industrial undertaking that has availed incentive under this scheme shall install and effectively operate and maintain pollution control measures as per the standards prescribed and approved by the competent authority in this regard.
An industrial undertaking that has availed incentive under this scheme shall be required to remain in production continuously till the expiry of the eligible period of incentive. However, if production is discontinued due to reasons beyond the control of the management, the sanctioning authority may condone the period for which production is discontinued after due verification of details and reasons for discontinuation of production
and after satisfying itself to the same.
