Reimbursement of VAT/CST/GST on Goods Supplied to Incubatees: Karnataka Startup Policy — Eligibility Criteria

To qualify for this tax reimbursement program, startups must fulfill several specific conditions designed to support genuine early-stage innovation within Karnataka.

• The startup must be officially registered with the Karnataka Startup Cell and possess a valid KBITS registration number. This ensures formal recognition within the state's startup ecosystem.
• It is mandatory for the startup to be physically incubated within an incubator that is supported by the Government of Karnataka (GoK). This requirement emphasizes a structured environment conducive to growth, offering mentorship, infrastructure, and networking opportunities.
• Reimbursement is applicable exclusively to purchases and supplies made after the startup's registration date with the Karnataka Startup Cell. This ensures the incentive directly supports operational activities during the period of state recognition.
• The startup's annual turnover must not exceed ₹50 Lakhs to be eligible. This financial threshold targets nascent and early-growth stage startups that typically face significant financial constraints.
• Eligibility for the reimbursement extends only for the first three years of the startup's incubation period, providing crucial support during the challenging initial phase of market entry and expansion.
• Reimbursements are processed based on seniority, contingent upon the availability of the allocated budget, ensuring a transparent and fair distribution of funds.

Reimbursement of VAT/CST/GST on Goods Supplied to Incubatees: Karnataka Startup Policy is open to startups at the idea, product and revenue stage. The programme is targeted at startups registered in Karnataka.