Haryana Government Subsidy for Industries – HEEP 2020 Policy

The Haryana Enterprises and Employment Policy (HEEP) 2020 introduces a powerful subsidy framework to promote industrial growth and attract new investments in the state. One of its key incentives, the Investment Subsidy in lieu of Net SGST, reimburses a portion of the State GST paid by eligible enterprises.

This policy supports MSMEs, large industries, and service units by lowering operational costs and encouraging expansion in backward regions. Valid till December 31, 2025, the HEEP 2020 policy reflects Haryana’s vision for balanced regional development, job creation, and a globally competitive industrial ecosystem.

Introduction: Maximizing Industrial Growth with HEEP 2020

The Haryana Enterprises and Employment Policy (HEEP) 2020 is one of the state’s most transformative initiatives aimed at boosting industrial development, attracting investment, and generating large-scale employment. Designed to position Haryana as a leading industrial destination in India, the policy offers a comprehensive set of fiscal and non-fiscal incentives tailored to support both manufacturing and service-sector enterprises. Among its most impactful benefits is the Investment Subsidy in lieu of Net SGST, which reimburses a portion of the State GST paid by eligible units.

This subsidy significantly reduces the cost of doing business, making industries more financially resilient and competitive. By categorizing districts into A, B, C, and D blocks based on development levels, HEEP 2020 ensures balanced regional growth, offering higher incentives to backward districts and promoting industrial expansion in underdeveloped areas.

The policy supports a diverse range of businesses, including MSMEs, large industries, thrust sectors, service enterprises, expansion projects, and import substitution units. With a validity period from January 1, 2021, to December 31, 2025, HEEP 2020 reflects the state government’s long-term vision to strengthen infrastructure, encourage innovation, and create a robust, sustainable, and investor-friendly industrial environment.

Objective, Quantum & Key Definitions

Under the Haryana Enterprises and Employment Policy (HEEP) 2020, eligible industries receive a powerful financial benefit through Investment Subsidy in lieu of Net SGST. This subsidy reimburses 30% to 100% of the Net SGST paid by an enterprise, with the duration ranging from 5 to 10 years, depending on the size of the unit and its block category (A, B, C, or D).
SGST represents the State Goods and Services Tax paid on intra-state sales, while Net SGST refers to the actual payable amount after deducting all eligible Input Tax Credits (ITC).

The key objective of this incentive is to strengthen Haryana’s position as a leading investment destination, promote balanced regional growth, and encourage new and expansion projects across the state. These fiscal benefits are supported through the official Gazette notification dated 29.12.2020 and further refined by the corrigendum issued on 04.05.2023.

Eligibility, Conditions & Exclusions

Mandatory Registrations:
- IEM for Large/Mega units; Udyam Registration + HUM for MSMEs
- GST registration is compulsory
Qualifying Investment: Only new investments in land under use, new construction, and new plant/machinery count under Fixed Capital Investment (FCI).
Production Requirement: Units must be in commercial production (first sale bill issued).
Excluded Units: Those listed in the restrictive industries list, including polluting units, stone crushers, tobacco units, packaged-drinking-water units in dark zones, tanneries, dyeing industries without zero liquid discharge, etc.
Integrity Compliance: Incentive is not available for SGST payable due to fraud, misrepresentation, or export refunds.

Category-Wise Assistance & Beneficiary Segments

Block Categories

Haryana blocks: A, B, C, D (D = highest subsidy benefits).
Incentives increase as you move from A → D.

Eligible Beneficiaries

MSMEs , Large & Mega Projects , Thrust Sector Units , Startups , Service Enterprises, Expansion/Diversification Units , Import Substitution Units.

Key Assistance (Quick Examples)

Enterprise Type	Location	SGST Assistance	Duration & Cap
Mega Project	D Block	50%	7 yrs + 35% for next 3 yrs (125% FCI cap)
MSME	D Block	50%	10 yrs + 35% for next 3 yrs (150% FCI cap)
Thrust Sector	D Block	50%	10 yrs (150% FCI cap)
Services Sector	B/C/D	50%	5 yrs (100% FCI cap)
Startups	All Blocks	50%	7 yrs (150% FCI cap)

Expansion/Diversification – Special Rules

Must invest 50% additional value in Plant & Machinery.
Subsidy claim options:
- Separate GST registration, or
- Same GST with turnover exceeding base turnover (highest of past 3 years).

How KIP Can Help You

End-to-End Subsidy Guidance: Complete support for understanding eligibility, documentation, and financial benefits under HEEP 2020.
Project Feasibility & Financial Reports: Accurate DPRs, SVRs, FFRs, and business plans tailored to your project.
Application & Compliance Support: Assistance in preparing applications, coordinating with departments, and ensuring timely approvals.
GST & Subsidy Calculation: Precise estimation of Net SGST reimbursement and incentive caps for your category.
Startup & MSME Support: Specialized guidance for new entrepreneurs, small industries, and service-based enterprises.
Sector-Specific Expertise: Strong experience in Biomass, CBG, Warehousing, Manufacturing, and Import Substitution sectors

Frequently Asked Questions (FAQs)

Q1: What is the main subsidy offered under HEEP 2020?

HEEP 2020 provides Investment Subsidy in lieu of Net SGST, reimbursing 30%–100% of Net SGST for eligible units.

Q2: Which industries are eligible for this SGST subsidy?

MSMEs, Large & Mega Projects, Thrust Sector units, Startups, Service Enterprises, Expansion/Diversification projects, and Import Substitution Units.

Q3: What is the duration of subsidy benefits?

Depending on category and project type, benefits are offered for 5 to 10 years.

Q4: What is Net SGST?

Net SGST is the SGST payable after adjusting eligible Input Tax Credits (ITC).

Q5: Are expansion or diversification projects eligible?

Yes. Units must invest 50% additional Plant & Machinery value and meet GST/turnover criteria.

Haryana Government Subsidy for Industries – HEEP 2020 Policy

Introduction: Maximizing Industrial Growth with HEEP 2020

Objective, Quantum & Key Definitions

Eligibility, Conditions & Exclusions