Rajasthan PNG VAT Reimbursement — 5% Subsidy for Manufacturers — Frequently Asked Questions
Answers to the questions founders most often ask about Rajasthan PNG VAT Reimbursement — 5% Subsidy for Manufacturers — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much funding does this Rajasthan scheme actually give?
It reimburses 5 percentage points of the VAT your unit pays on Piped Natural Gas. Because the figure is tied to the gas your plant consumes and the tax on it, the scheme lists the amount as varying — there is no flat sum. The reimbursement continues for 7 years.
Who is eligible to claim the PNG VAT reimbursement?
Only manufacturing enterprises qualify. On top of that, the enterprise has to be investing in a sector specified under Annexure 9.6 of the Rajasthan Investment Promotion Scheme 2024. If your business is not a manufacturing unit, or your sector is not in that annexure, the scheme does not apply to you.
Is there a last date to apply?
No. The scheme is a rolling, always-open incentive, so there is no application window or cut-off date to meet. What matters instead is meeting the eligibility conditions in the policy.
Do I have to repay the money, or give up equity?
Neither. This is a reimbursement — effectively a subsidy — so the amount you receive is not repayable. It is also equity-free: the state does not take a stake in your company in exchange for the benefit.
For how long can my unit receive the reimbursement?
The benefit is available for a period of 7 years. During that time you claim against the VAT you have actually paid on PNG, which is why the annual value of the reimbursement can differ from year to year.
Which sectors are covered by the scheme?
The covered industries are those listed in Annexure 9.6 of the Rajasthan Investment Promotion Scheme 2024 policy document. The structured scheme details do not reproduce that list, so the annexure itself is the reference point for checking whether your line of manufacturing is included.
What documents will I need?
Two sets of paperwork drive the process. First, documentation proving that you are a manufacturing enterprise and that your investment is in a sector covered by Annexure 9.6. Second, and on an ongoing basis, proofs of the VAT you have paid on PNG consumption — these are what you submit to claim the reimbursement over the 7-year period.
How and where do I apply?
Applications follow the guidelines set out under the Rajasthan Investment Promotion Scheme 2024 and go to the relevant state authority, such as the Department of Industries or the Finance Department of Rajasthan. The state's investment portal at https://rajnivesh.rajasthan.gov.in/ is the starting point, and the full application guidelines under RIPS 2024 set out the procedure.
Is the scheme competitive, or will my application be judged against others?
It is not competitive. There is no ranking or selection round — an enterprise that satisfies the policy conditions is treated as eligible. In effect, the reimbursement is an entitlement once you meet the manufacturing and Annexure 9.6 sector requirements.
Who runs the Rajasthan PNG VAT Reimbursement?
It is administered by the Department of Industries and Commerce, Government of Rajasthan, and operates as an initiative under the Rajasthan Investment Promotion Scheme 2024.
Is DPIIT recognition required for Rajasthan PNG VAT Reimbursement — 5% Subsidy for Manufacturers?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Rajasthan PNG VAT Reimbursement — 5% Subsidy for Manufacturers, though having it can strengthen your application and unlock other benefits.
How do I apply for Rajasthan PNG VAT Reimbursement — 5% Subsidy for Manufacturers?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
← Back to Rajasthan PNG VAT Reimbursement — 5% Subsidy for Manufacturers overview