Chhattisgarh Mandi Tax Exemption Scheme — Up to ₹5 Cr a Year for MSMEs — Frequently Asked Questions

Eligible enterprises get a full 100% exemption from mandi tax on their agricultural product purchases. A single year's exemption is capped at ₹5.00 crore, and the total claimed across the five-year benefit period cannot go beyond 75% of the unit's Fixed Capital Investment.

Two sectors are covered: agricultural and food processing, and biofuel or ethanol production. Units that the Chhattisgarh Industrial Development Policy 2024-30 classifies as 'ineligible industries' are excluded, even if they otherwise operate in these sectors.

No. The scheme is restricted to new MSME enterprises, so a unit that was already operating before the qualifying investment does not fit the eligibility criteria. The 'new enterprise' status is one of the points authorities verify during scrutiny.

The benefit is available for 5 years. The clock starts on the date of the enterprise's first purchase of raw materials, not on the date of incorporation or the date of approval.

The first purchase of raw materials must be made within Chhattisgarh — either at state mandis, directly from producing farmers, or from units based in the state. Purchases from outside this set do not support an eligibility claim under the scheme.

Neither. The scheme is a subsidy delivered as a tax exemption, so there is nothing to repay and no equity is taken in return. The promoter's shareholding stays untouched.

The application typically requires proof of MSME registration (Udyam Registration), a detailed project report describing the enterprise's activities and investment, proof of fixed capital investment, certificates of incorporation and other statutory registrations, records of raw material purchases, and a formal application form specifying the exemption being sought.

Applications follow the procedure laid down in the Chhattisgarh Industrial Development Policy 2024-30 and are filed with the Department of Industries or the relevant district industry centre. The state's single-window portal at https://swsportal.cgstate.gov.in/login/ is the starting point, and the full policy document plus departmental guidelines carry the current forms and procedural updates.

No. The scheme runs on rolling, always-open applications, so there is no fixed last date to file. That said, since the five-year benefit period is anchored to the first raw material purchase, filing early enough to have the exemption sanctioned is what protects the full tenure.

Fixed Capital Investment broadly means the money the enterprise has put into land, building, plant, machinery and other fixed assets needed for its operations. The scheme uses this figure to set the overall cap on the exemption — the cumulative benefit over five years cannot cross 75% of it, which keeps the support proportional to the scale of investment.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Chhattisgarh Mandi Tax Exemption Scheme — Up to ₹5 Cr a Year for MSMEs, though having it can strengthen your application and unlock other benefits.

Chhattisgarh Mandi Tax Exemption Scheme — Up to ₹5 Cr a Year for MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.

Chhattisgarh Mandi Tax Exemption Scheme — Up to ₹5 Cr a Year for MSMEs is offered by Department of Industries, Government of Chhattisgarh, 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.