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Incentives to Encourage Purchases from Local Suppliers — Goa ₹5L Subsidy — Frequently Asked Questions

FAQ

Answers to the questions founders most often ask about Incentives to Encourage Purchases from Local Suppliers — Goa ₹5L Subsidy — who qualifies, the funding amount, required documents and how the application works.

Frequently asked questions

How much money does this scheme give?

You get back 2% of the cost of your eligible local purchases, subject to a ceiling of ₹5,00,000 in a single year. The purchase value used for the calculation excludes GST.

Who can apply for this scheme?

The scheme is open to industrial units in the white, green or orange category that are micro, small or medium manufacturing units. Traders in businesses such as horticulture and food processing are also covered. Your unit must be registered under the Goa State Incentives to Encourage Investments Scheme, and it must source at least 50% of the value of its production inputs locally.

Is there a deadline to apply?

There is no single cut-off date — this is a rolling scheme. Applications are filed in the prescribed format after the close of every financial year, and the claim is considered subject to the budget DITC has available at that time.

Does the scheme take equity in my business?

No. This is a subsidy paid as a reimbursement, so no shares or ownership stake are taken in your unit. The benefit is non-dilutive.

Do I need DPIIT recognition or MSME registration to apply?

The scheme's stated requirement is registration under the Goa State Incentives to Encourage Investments Scheme, the state's umbrella incentive programme. The applicant must also be a micro, small or medium manufacturing unit, and must not have claimed a similar benefit under any other Government of Goa scheme.

What counts as a local purchase under this scheme?

Any industrial input bought from Goa, including consumables, qualifies — whether or not that input was manufactured within the state. Services are not counted, and the value considered for the calculation is exclusive of GST.

For how many years can I claim the reimbursement?

You can claim the benefit for five consecutive years, counted from the date of your first successful application.

Is there a minimum local sourcing requirement?

Yes. Your unit must buy at least 50% of the value of its raw materials, components, tools and similar production inputs from local sources or manufacturers in Goa. DITC verifies this during the review of your claim.

How do I apply for the reimbursement?

Download and print the prescribed application form along with the Affidavit cum Declaration. Fill in all mandatory fields, attach the required documents and self-attest the copies. The signed and sealed application is then submitted to the Directorate of Industries, Trade and Commerce after the financial year closes. Disbursement follows DITC's review and depends on budgetary allocation.

What conditions do I have to keep meeting after applying?

You must allow DITC officials free access for inspection and submit the reports and documents the department asks for. All information provided must be correct — if it is not, the subsidy can be revoked and the funds recovered.

Who offers Incentives to Encourage Purchases from Local Suppliers — Goa ₹5L Subsidy?

Incentives to Encourage Purchases from Local Suppliers — Goa ₹5L Subsidy is offered by Directorate of Industries, Trade and Commerce, Government of Goa, a government body. It is provided as non-dilutive funding.

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