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

An eligible unit pays no mandi tax at all on agricultural products for five years, so the saving equals the levy it would otherwise have paid. Two limits apply: the exemption cannot exceed ₹5 crore in any one year, and across the full five-year period the cumulative benefit cannot go beyond 75% of the unit's fixed capital investment. The yearly figure and the five-year cap therefore work together rather than independently.

No. It is a subsidy delivered as a tax exemption, so it is non-dilutive — the Government of Chhattisgarh takes no stake, no shares and no ownership in your enterprise. You simply stop paying mandi tax on qualifying purchases for the duration of the benefit.

There is no closing date. The scheme stays open round the year, described as rolling or always open, and approval is granted on the merits of the application rather than against a fixed cut-off. That said, the five-year benefit period only starts once you are approved and have made your first raw material purchase, so applying earlier means the relief begins sooner.

The incentive is meant for new large enterprises operating in Chhattisgarh, and only in two sectors: agricultural and food processing or biofuel and ethanol. Units that appear on the policy's list of ineligible industries cannot claim it even if they work in one of those sectors, so checking your industry against that list is a sensible first step.

The clock starts on the specific date of the unit's first purchase of raw materials. The policy notes that this first purchase may be made from state mandis, directly from producing farmers, or from other units. The five years are counted from that documented date, not from the date the application was approved.

The published eligibility for this exemption makes no mention of a DPIIT or MSME registration requirement. What it does rest on is the enterprise being new and large, operating in one of the two eligible sectors, and staying off the policy's ineligible-industry list. If your project depends on this benefit, confirm the documentary requirements in the policy text before you apply.

The application package usually includes proof of enterprise registration, a detailed project report, verification of your fixed capital investment, and any additional forms or declarations specified in the policy. Because the required documents are defined in the policy itself, read the Chhattisgarh Industrial Development Policy 2024-30 before assembling your file.

Applications go to the designated state authority responsible for industrial incentives in Chhattisgarh, as identified in the policy guidelines, and the process runs through the state's single-window portal at https://swsportal.cgstate.gov.in/login/. The complete procedure, including the specific forms and submission instructions, is set out in the Chhattisgarh Industrial Development Policy 2024-30, which is available on the Invest Chhattisgarh website.

The policy refers to agricultural products, and the exemption runs for five years from the unit's first raw material purchase, which may come from state mandis, from producing farmers or from other units. Specific product exclusions are not listed in the summary of the scheme, so enterprises should consult the full policy document to confirm which products qualify.

It is neither a grant cheque nor a loan. The support is a subsidy in the form of a 100% mandi tax exemption, which lowers what a qualifying unit pays on its agricultural raw material purchases. There is nothing to repay and no interest attached, and the value shows up as reduced operating cost rather than as money received.

Chhattisgarh Mandi Tax Exemption — Up to ₹5 Cr a Year for 5 Years 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.