Net SGST Reimbursement Scheme — 100% SGST Refund for 7 Years — Frequently Asked Questions
Answers to the questions founders most often ask about Net SGST Reimbursement Scheme — 100% SGST Refund for 7 Years — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much funding does the Net SGST Reimbursement Scheme provide?
There is no fixed amount. An eligible enterprise gets back 100% of the Net SGST it has paid, for a period of seven years, and the total cannot exceed 100% of the enterprise's Fixed Capital Investment. The actual figure therefore varies from business to business, depending on how much state GST it pays and how much it has invested in fixed capital.
Is there a deadline to apply?
No. The scheme has a rolling, always-open application window, so there is no annual cut-off date to work towards. Applications are handled as per the procedures laid down in the IT, ITeS and ESDM Policy 2019.
Who is eligible to claim this reimbursement?
Enterprises in the Information Technology (IT), IT Enabled Services (ITeS) and Electronic System Design and Manufacturing (ESDM) sectors that are operating within Himachal Pradesh. Sector and location are the two conditions that decide eligibility.
Does the scheme take equity or a stake in my company?
No. This is a reimbursement, so the support arrives as a refund of state GST you have already paid rather than as an investment. You do not give up any ownership or shares in exchange for it.
Does the reimbursement cover central GST as well?
No. The scheme is specifically about the Net SGST paid, which means it covers the state component of GST only. Central GST is not reimbursed.
What documents do I need to submit?
You will need proof of the Net SGST you have paid, along with details of your Fixed Capital Investment. The full documentation requirement is set out in the guidelines of the IT, ITeS and ESDM Policy 2019, and both sets of records are needed because the benefit is calculated from the SGST paid and capped by the fixed capital figure.
How do I apply for the Net SGST Reimbursement Scheme?
Start by reading the IT, ITeS and ESDM Policy 2019 and its incentive guidelines so you know what is expected. Then assemble your documentation — proof of Net SGST paid and details of Fixed Capital Investment — and submit the application to the designated authority, which is typically the Department of Industries, Government of Himachal Pradesh. The state's online services portal at https://emerginghimachal.hp.gov.in/online-services is where applications are filed. After submission, you wait for communication on verification and approval of your claim.
Is DPIIT or MSME registration required to apply?
The scheme's stated eligibility conditions are sector and location — the enterprise must be in IT, ITeS or ESDM and operating in Himachal Pradesh. No separate DPIIT or MSME registration requirement is mentioned in the scheme details provided.
How is my claim assessed after I apply?
A committee within the Department of Industries, Government of Himachal Pradesh reviews it. The committee verifies that your enterprise is eligible, validates the documents you submitted as proof of Net SGST payments, and confirms your Fixed Capital Investment details. Once that is done and the claim is approved, the reimbursement is released as per the policy's terms and conditions.
How long does approval take?
The scheme details do not specify a processing timeline. What is stated is that after you apply, the Department of Industries will contact you regarding the verification and approval of your claim.
Who offers Net SGST Reimbursement Scheme — 100% SGST Refund for 7 Years?
Net SGST Reimbursement Scheme — 100% SGST Refund for 7 Years is offered by Department of Industries, Government of Himachal Pradesh (Startup Himachal), a government body. It is provided as non-dilutive funding.
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