AP Net SGST Reimbursement — 100% SGST Refund for 5 Years — Frequently Asked Questions

There is no fixed sum — the payout varies from one enterprise to the next because it is calculated as the Net SGST you have genuinely paid. The scheme refunds 100% of that figure, released annually over five years. Two ceilings apply: up to 5% of your annual turnover in any single year, and no more than 100% of your eligible Fixed Capital Investment in total.

The programme runs on a rolling basis with no single cut-off date. It is tied to Andhra Pradesh's 2024-29 policy cycle, so applications are accepted through that period, typically as enterprises reach the relevant eligibility or commissioning milestones. Even so, it is wise to move early, because the policy guidelines set their own timelines for the initial application and for each annual claim.

Eligibility depends on the policy you fall under. Sub-Large and Large enterprises qualify under IDP 4.0, Micro, Small and Medium enterprises qualify under MEDP 4.0, and Micro, Small, Medium and Large enterprises qualify under FPP 4.0. FPOs, SHGs, federations, cooperatives and societies may also be eligible, with their investment size being the deciding factor. In every case the unit must be located and operating in Andhra Pradesh.

Yes, these collective forms of enterprise are within scope. Whether a particular FPO, SHG, federation, cooperative or society qualifies depends on the size of its investment and on meeting the conditions set out in the applicable policy. Larger investment typically widens the categories a collective can fall into.

No. This is a state subsidy in the form of a cash reimbursement, not a loan and not an equity investment. You keep full ownership of your business, and there is nothing to repay — the benefit simply offsets the Net SGST you have already paid, subject to the turnover and Fixed Capital Investment caps.

There are two. The annual cap limits your claim to 5% of your annual turnover for that year, and the cumulative cap limits total claims across the five years to 100% of your eligible Fixed Capital Investment. A large SGST outgo therefore does not automatically translate into a large refund — the lower of the applicable ceilings governs.

The eligibility conditions set out for this scheme centre on your enterprise classification under IDP 4.0, MEDP 4.0 or FPP 4.0, and on your unit being operational in Andhra Pradesh. No separate DPIIT recognition requirement is listed among the stated conditions, so the deciding factors are your category and the policy framework you apply under.

Expect to provide proof of the SGST you have paid, audited financial statements that establish your annual turnover, and records detailing your eligible Fixed Capital Investment. These are the inputs used to compute your reimbursement within the prescribed caps. Further documentation can be requested while your application is under review, so keep your filings current.

You submit a formal application to the designated state department or agency that handles industrial incentives in Andhra Pradesh, giving full details of your business, its operations and the policy you are claiming under. The application process is described in the IDP 4.0, MEDP 4.0 and FPP 4.0 policy documents for 2024-29, and the incentive portal at https://www.apindustries.gov.in/Incentives/Index.aspx is the starting point.

Assessment is verification-based rather than competitive. Authorities first confirm your eligibility category and that the unit operates in Andhra Pradesh, then scrutinise your SGST records, turnover reports and Fixed Capital Investment documentation to calculate the correct amount within the caps, and finally review everything for accuracy and policy compliance. Once that clears, the reimbursement is disbursed annually.

AP Net SGST Reimbursement — 100% SGST Refund for 5 Years is open to startups at any stage. It is open to startups registered anywhere in India.

AP Net SGST Reimbursement — 100% SGST Refund for 5 Years is offered by Department of Industries & Commerce, Government of Andhra Pradesh, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.