Reimbursement of VAT/CST/GST on Goods Supplied to Incubatees: Karnataka Startup Policy — Frequently Asked Questions
Answers to the questions founders most often ask about Reimbursement of VAT/CST/GST on Goods Supplied to Incubatees: Karnataka Startup Policy — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
Which taxes are reimbursed?
The program reimburses Value Added Tax (VAT), Central Sales Tax (CST) for the pre-GST period, and Goods and Services Tax (GST) for the post-GST period (from July 1, 2017 onward).
What is the maximum annual turnover to stay eligible?
Your startup's annual turnover must not exceed ₹50 lakhs.
How long can I claim this reimbursement?
You can claim for the first three years of physical incubation.
Do I need to be physically incubated?
Yes. The program requires physical incubation in a Government of Karnataka-supported incubator.
Is there any equity dilution?
No, it is a subsidy — a financial reimbursement — that does not require giving up any equity.
What documents do I need to apply?
You need to submit financial records, invoices, and tax returns that show the VAT/CST/GST paid and confirm your compliance.
How is the reimbursement amount decided?
The Karnataka Startup Cell calculates the eligible reimbursement based on the net tax paid, within the guidelines and the turnover cap. The Managing Director of KBITS then approves the amount.
How quickly does the disbursement happen?
Disbursement is done annually on a seniority basis, subject to budget availability. There is no fixed wait time; it may vary.
Can service-based startups apply?
The program specifically covers goods supplied to incubatees. Service-based startups likely do not qualify unless they also supply taxable goods.
Where do I apply?
Applications can be submitted on the Mission Startup Karnataka portal: https://www.missionstartupkarnataka.org/incentives?reimbursement-of-vat-cst-gst
What is the application deadline for Reimbursement of VAT/CST/GST on Goods Supplied to Incubatees: Karnataka Startup Policy?
Reimbursement of VAT/CST/GST on Goods Supplied to Incubatees: Karnataka Startup Policy runs on a rolling basis with no fixed deadline — applications are accepted on an ongoing basis. Check the official site to confirm the window is currently open.
Is DPIIT recognition required for Reimbursement of VAT/CST/GST on Goods Supplied to Incubatees: Karnataka Startup Policy?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Reimbursement of VAT/CST/GST on Goods Supplied to Incubatees: Karnataka Startup Policy, though having it can strengthen your application and unlock other benefits.
Who is eligible to apply for Reimbursement of VAT/CST/GST on Goods Supplied to Incubatees: Karnataka Startup Policy?
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.
Who offers Reimbursement of VAT/CST/GST on Goods Supplied to Incubatees: Karnataka Startup Policy?
Reimbursement of VAT/CST/GST on Goods Supplied to Incubatees: Karnataka Startup Policy is offered by KBITS, Government of Karnataka, a government body. It is provided as non-dilutive funding.
How do I apply for Reimbursement of VAT/CST/GST on Goods Supplied to Incubatees: Karnataka Startup Policy?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.