State GST Linked Incentive Under Haryana Enterprises & Employment Policy 2020

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‘Investment Subsidy in lieu of Net SGST of Haryana' notified under the Haryana Enterprises & Employment Policy,2020 (dated 29.12.20) – an attractive incentive scheme for various categories of enterprises...

India Tax

'Investment Subsidy in lieu of Net SGST of Haryana' notified under the Haryana Enterprises & Employment Policy,2020 (dated 29.12.20) - an attractive incentive scheme for various categories of enterprises.

INTRODUCTION

With an objective to establish Haryana as a favoured investment destination and generating jobs in the State, the Industries and Commerce Department of the Haryana Government had announced the Haryana Enterprises and Employment Policy-2020 (HEEP) on 29 December 2020. The HEEP envisaged a variety of fiscal incentives "for reducing cost of doing business to make the industry competitive and sustainable" for various categories of enterprises. In pursuance thereof, the Haryana government has notified the 'Investment Subsidy in lieu of Net SGST' (the Scheme) on 29 July 2021 which is also in line with the changes introduced in tax administration, post implementation of GST.

SALIENT DETAILS OF THE SCHEME

Quantum of incentives and key conditions

1. Ultra-Megaprojects

Quantum of incentives

Key Conditions

Customised package of incentives with the quantum and period shall be decided by the Haryana Enterprises Promotion Board (HEPB).

Iconic Projects with minimum Fixed Capital Investment (FCI) -

INR 6,000 crore in A Blocks*
INR 4,500 crore in B Blocks
INR 3,000 crore in C Blocks
INR 1,500 crore in D Blocks

* The Haryana government has declared and demarcated areas in the State as 'A' Blocks, 'B' Blocks, 'C' Blocks and 'D' Blocks for the implementation of the Scheme.

2. Mega Projects

Quantum of incentives

Key Conditions

For units established in D Blocks with cap of 125% of FCI

75% of Net SGST for 1st 5 years
35% of Net SGST for next 3 years

For units established in C Blocks with cap of 100% of FCI

50% of Net SGST for 1st 5 years
25% of Net SGST for next 3 years

For units established in B Blocks with cap of 100% of new FCI from the date of commencement of commercial production

30% of Net SGST for 1st 5 years
15% of Net SGST for next 3 years

5% of FCI for 8 years in equal annual instalments

For projects with inverted duties
For units with Net SGST < 5% of FCI

Projects with minimum FCI -

INR 200 crore in B Blocks
INR 100 crore in C Blocks
INR 75 crore in D Blocks

A project undertaking expansion / diversification and identified service enterprises with same criteria of investment shall also be treated as a Mega Project.

Special Package of incentives for Mega Projects having potential to develop ancillary enterprises or cluster establishment / relocation with same criteria of investment shall be decided by the HEPB based on Cost Benefit Analysis.

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