Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries: Net SGST reimbursement

Description
The "Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state& 39;s dynamic mega-industry sector, which significantly contributes to employment, GDP, and exports. Effective from October 5, 2022, to October 4, 2032, this initiative supports growth, investments, and the vision of "Aatmanirbhar Gujarat" and "Aatmanirbhar Bharat." The component "Net SGST reimbursement" aims to provide financial support to eligible industrial projects by reimbursing a portion of their net State Goods and Services Tax SGST .

Exclusions
• Units involved in trading activities or providing services, unless they maintain separate registration for manufacturing.
• Units misrepresenting their sales (e.g., declaring inter-state sales as intra-state to claim higher incentives).

Definitions
Mega Industrial Unit
(Source: https://ic.gujarat.gov.in/documents/commondoc/2022/Atmanirbhar%20Gujarat%20Scheme%20for%20assistance%20to%20Mega%20Industries.pdf)

Date Of Commercial Production (DaCP)

Gross Fixed Capital Investment (GFCI)
(Source: https://ic.gujarat.gov.in/documents/commondoc/2022/Atmanirbhar%20Gujarat%20Scheme%20for%20assistance%20to%20Mega%20Industries.pdf)

Eligible Fixed Capital Investment (EFCI)
(Source: https://ic.gujarat.gov.in/documents/commondoc/2022/Atmanirbhar%20Gujarat%20Scheme%20for%20assistance%20to%20Mega%20Industries.pdf)

Benefits
• **Reimbursement:** Eligible units will be reimbursed the full net SGST paid.- **Maximum limit:** Reimbursement is capped at 0.9% of the eFCl value per annum.- **Long-term support:** The scheme offers reimbursement for a period of 20 years, starting from the commencement of commercial production.

Eligibility Criteria
1. The mega industry must operate as a manufacturing unit.
2. The unit must have a minimum investment of INR 2,500 crore in plant and machinery.
3. The unit must provide direct employment to at least 2,500 persons.
4. The unit must belong to one of the thrust sectors as defined in the [Guidelines](https://cmogujarat.gov.in/sites/default/files/2023-01/AatmaNirbhar-Gujarat_Industrial-Policy_0.pdf) (Refer Page No. 9). 1. The unit must obtain separate GST registration for the eligible products.
5. The project must be a new industrial undertaking with commercial production started within the applicable period.
6. The unit must comply with the conditions stated regarding sales classifications and documentation.

Application Process
Step 1: Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "New Investor Registration" to access the registration form.
Step-2: Fill in the Registration Form. Click on "Submit".
Step-3: Verify the E-mail ID using the link sent on your r…
Online

Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "New Investor Registration" to access the registration form.
Step-2: Fill in the Registration Form. Click on "Submit".
Step-3: Verify the E-mail ID using the link sent on your registered E-mail ID.
Step-4: After verification, you will be registered successfully.
Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "Login".
Step-2: Enter the email address and password you used during registration.
Step-3: Click the "Login" button to access your account.
Step-4: Now fill in the required details and mandatory documents about your business to complete the application process.

Required Documents
• Registration Copy Under the Scheme.
• Provisional Eligibility Certificate Under the Scheme
• Final Eligibility Certificate Under the Scheme (If Obtained)
• GST Registration with all Annexures
• Certificate as per Annexure A (A1 to A4) duly signed by the authorised person of the unit and certified by Statutory Auditor (wherever applicable), Chartered Accountant or Goods & Service Tax Auditor.
• Details of Sales and Purchase for the Period of Claim duly certified by the Chartered Accountant (Annexure B)
• Affidavit (in Prescribed format as per Annexure C) - To be submitted with first claim only
• Affidavit (in Prescribed format as per Annexure D) - To be submitted with every claim
• CA Certificate for the claim period (in Prescribed format as per Annexure E)
• CA Certified Credit Ledger Balance from Common portal of GST for the applied quarter
• CA Certified Cash ledger from Common portal of GST for the applied quarter
• GSTR-3B form duly signed and stamped by concerned Commercial Tax Officer
• Authority Letter duly certified with Board Resolution, Directors / Partners / Owner - (Authorised Person should be any Director/Partner/at-least Employee of the Company)
• Attendance / Salary Register for the Last Month of Claim Period
• Employment Statement for the Last Month of the Claim Period in Prescribed Format
• Details of Apprentice (If applicable)
• Copy of any Purchase bill and any Sale bill for the month of Claim Period
• Valid Insurance Policy for Fixed Assets
• IEM Part-B / IL / LOP - To be submitted in first claim only
• Valid CCA obtained from GPCB (if applicable).
• Declaration regarding not having any other manufacturing units other than the incentivised unit for manufacturing the same product at any other location in the state.
• Annual Audit Report for the applied Claim Period (in case of last quarter of Financial year).

Frequently Asked Questions
Q: What is the "Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries"?
A: The "Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries" is a state initiative designed to support and strengthen the Mega Industry sector in Gujarat. It aims to enhance growth, encourage investments, and contribute to the vision of self-reliant Gujarat and India.

Q: When is the scheme operative?
A: The scheme is operative from October 5, 2022, to October 4, 2032, covering a period of 10 years.

Q: What are the objectives of the scheme?
A: The scheme aims to boost Mega Industry growth, enhance the industrial ecosystem, encourage investments, and contribute to Gujarat's and India's self-reliance vision.

Q: Who is eligible to benefit from the scheme?
A: Mega Industries established and operating within Gujarat are eligible to benefit from the scheme, as per the criteria defined in the policy framework.

Q: What is the "Net SGST Reimbursement" component?
A: The Net SGST Reimbursement Scheme offers eligible manufacturing units the opportunity to receive a 100% reimbursement of net SGST paid, subject to a maximum of 0.9% of the annual eFCl for a period of 20 years, starting from the date of commencement of commercial production.

Q: Who is eligible for the Scheme?
A: Eligible units are those engaged solely in manufacturing eligible products, who have obtained a separate GST registration for manufacturing and meet other necessary conditions outlined in the scheme.

Q: How long will the reimbursement continue?
A: The reimbursement is available for a period of 20 years, beginning from the commencement of commercial production of the eligible products.

Q: What is the maximum reimbursement amount under the scheme?
A: The maximum reimbursement is limited to 0.9% of the annual eFCl for each year during the 20-year eligibility period.

Q: Can a unit claim reimbursement for trading activities or services?
A: No, the unit must only be engaged in the manufacturing of eligible products. If a unit is involved in trading or services, they must maintain separate GST registration for manufacturing to qualify.

Q: What happens if a unit violates the rules of the scheme?
A: If the unit violates the scheme's conditions, such as misrepresenting sales or failing to comply with GST provisions, the eligibility certificate will be canceled, and the unit will be required to return the incentives along with an 18% annual interest.

Q: How is the reimbursement amount determined for an eligible unit?
A: The reimbursement amount is based on the net SGST paid by the unit, up to the maximum limit of 0.9% of the annual eFCl, as prescribed under the scheme.

Q: How frequently should claims be submitted?
A: Claims for reimbursement must be submitted on a quarterly basis to the Industries Commissioner, following the prescribed proforma and certification by a Chartered Accountant.

Q: Can the reimbursement amount be modified?
A: The reimbursement amount is fixed based on the net SGST paid, subject to the 0.9% of the annual eFCl limit, and cannot exceed this cap.

Q: Can a unit apply for the scheme for multiple industrial projects?
A: Yes, a unit with multiple industrial projects can apply, but each project must maintain separate books of accounts, and the unit must meet the criteria for each individual project.