Investment Subsidy in lieu of Net SGST under Haryana Enterprises and Employment Policy (HEEP), 2020

The Haryana Enterprises and Employment Policy (HEEP), 2020, aims to promote industrial growth, attract investments, and create employment opportunities in Haryana. One of its key fiscal incentives is the Investment Subsidy in lieu of Net SGST, designed to reduce the cost of doing business and enhance industrial competitiveness.

What is the Investment Subsidy in lieu of Net SGST?

This subsidy provides financial relief to businesses by reimbursing a portion of the Net SGST (State Goods and Services Tax) paid by eligible enterprises. The reimbursement ranges from 30% to 100% and is applicable for a period of 5 to 10 years, depending on:

The size of the enterprise (Micro, Small, Medium, Large, or Mega industries).
The location of the business within the state, as Haryana offers varied incentives based on industrial zones.

Objective of the Subsidy :

The primary aim of this scheme is:

To reduce the financial burden on enterprises.
To encourage industrial investments in Haryana.
To enhance competitiveness by making business operations cost-effective.
To boost employment generation and economic development.

Who is Eligible?

1. Micro, Small, and Medium Enterprises (MSMEs)

Eligible for higher reimbursement rates to promote small businesses.
Encouragement to invest in backward and underdeveloped regions.

2. Large and Mega Enterprises

Incentives depend on the industry type and investment quantum.
Special preference for industries in high-priority sectors such as manufacturing, agro-processing, logistics, and bio-energy.

3. Sector-Specific Incentives

Certain industries receive higher benefits based on their contribution to employment and economic growth.
Warehousing, food processing, and agri-based businesses may receive additional incentives.

Benefits of the SGST Subsidy

Cost Reduction – Lower tax liabilities help businesses reinvest in expansion and technology.
Encouragement for New Investments – Haryana becomes a more attractive destination for setting up industries.
Support for MSMEs – Small businesses benefit from significant reimbursement, helping them grow.
Regional Development – Industries in underdeveloped zones get better incentives, promoting balanced economic growth.
Enhanced Profitability – Reduction in tax burden increases the overall profitability of businesses.

How to Apply?

The application process involves:

Online Registration on the Haryana Udyam Memorandum (HUM) portal.
Submission of GST Returns and necessary business documents.
Verification & Approval by the Department of Industries and Commerce, Haryana.
Reimbursement Processing based on the Net SGST paid by the business.

For detailed guidelines, businesses can refer to the official notification available in the Haryana Government Gazette.

Conclusion :

The Investment Subsidy in lieu of Net SGST is a major fiscal incentive under HEEP 2020, aimed at making Haryana a preferred industrial hub. By providing tax reimbursements ranging from 30% to 100%, the state government is ensuring that businesses remain cost-competitive, sustainable, and growth-oriented.

If you are planning to set up an industry in Haryana, this scheme offers a golden opportunity to reduce your operational costs and enhance your profitability. Make sure to explore the benefits and apply for the subsidy to maximize your returns on investment!

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