Banglashree for Micro, Small and Medium Enterprises: Subsidy for State Goods and Services Tax (SGST)

Description
“Subsidy for State Goods and Services Tax SGST ” is a sub-scheme under the “Banglashree for Micro, Small and Medium Enterprises” scheme. It was launched on 1st April 2020 by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, and shall remain in force till 31st March 2025. Objectives of the "Banglashree for MSME” Scheme: The objective of the scheme is to extend fiscal incentives to encourage entrepreneurs to set up Micro, Small and Medium Enterprises with a view to focusing on the balanced development of MSMEs across the State and creating a sustainable ecosystem in the MSME sector which can maximize the utilization of resource, generate new employment and widen the area of operation to make the State emerge as the MSME leader in the country. Objectives of the "Subsidy for State Goods and Services Tax SGST " Scheme: Through this incentive, an eligible micro, small and medium enterprise for its approved project will be entitled to refund net State Goods and Services Tax SGST paid to the Government of West Bengal.

Exclusions
• Enterprises registered and for which eligibility certificates have been issued /incentives have been sanctioned and/ or disbursed under the respective Incentive Scheme of the State.
• Enterprises registered and for which eligibility certificates have been issued in terms of the respective Incentive Scheme of the State but no sanction or disbursement of incentive has been made.
• Enterprises commenced production before 01.04.2019 and applied for incentive under the respective Incentive Scheme of the State within the stipulated date.
• Sponge Iron Factory.
• Bricks (Excluding Fly Ash bricks, Sand lime Bricks, Refractory Bricks).
• Any other industry notified by the State Govt. for inclusion in this list.
• Equipment such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores.
• Installation of Plant and Machinery.
• Research and development equipment and pollution control equipment.
• Power generation set and extra transformer installed by the enterprise as per the regulations of the State Electricity Board.
• Bank charges and service charges paid to the National Small Industries Corporations or the State Small Industries Corporations.
• Procurement or installation of cables, wiring, bus bars, electrical control panels (not mounted on individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the Plant and Machinery or for safety measures.
• Gas producer plant.
• Transportation charges for indigenous machinery from the place of their manufacture to the site of the enterprise.
• Charges paid for technical know-how for the erection of the Plant and Machinery.
• Such storage tanks which store raw materials and finished products only and are not linked to the manufacturing process.
• Fire fighting equipment.

Definitions
Zone-A
(Source: https://silpasathi.wb.gov.in/read-bytea-file-all/aWQ%3D/MTU5/NDQ%3D/ZW9kYl9zdGF0aWNfcGFnZV9wZGZfbWFuYWdl/cGRmX2NvbnRlbnQ%3D/MDFfMTU0M19tc21ldF8xODAxMV8yMjA3MjAyMF9jb21wcmVzc2VkLnBkZg%3D%3D)

Zone-B
(Source: https://silpasathi.wb.gov.in/read-bytea-file-all/aWQ%3D/MTU5/NDQ%3D/ZW9kYl9zdGF0aWNfcGFnZV9wZGZfbWFuYWdl/cGRmX2NvbnRlbnQ%3D/MDFfMTU0M19tc21ldF8xODAxMV8yMjA3MjAyMF9jb21wcmVzc2VkLnBkZg%3D%3D)

Zone-C
(Source: https://silpasathi.wb.gov.in/read-bytea-file-all/aWQ%3D/MTU5/NDQ%3D/ZW9kYl9zdGF0aWNfcGFnZV9wZGZfbWFuYWdl/cGRmX2NvbnRlbnQ%3D/MDFfMTU0M19tc21ldF8xODAxMV8yMjA3MjAyMF9jb21wcmVzc2VkLnBkZg%3D%3D)

Zone-D
(Source: https://silpasathi.wb.gov.in/read-bytea-file-all/aWQ%3D/MTU5/NDQ%3D/ZW9kYl9zdGF0aWNfcGFnZV9wZGZfbWFuYWdl/cGRmX2NvbnRlbnQ%3D/MDFfMTU0M19tc21ldF8xODAxMV8yMjA3MjAyMF9jb21wcmVzc2VkLnBkZg%3D%3D)

Zone-E
Cooch Behar District.
(Source: https://silpasathi.wb.gov.in/read-bytea-file-all/aWQ%3D/MTU5/NDQ%3D/ZW9kYl9zdGF0aWNfcGFnZV9wZGZfbWFuYWdl/cGRmX2NvbnRlbnQ%3D/MDFfMTU0M19tc21ldF8xODAxMV8yMjA3MjAyMF9jb21wcmVzc2VkLnBkZg%3D%3D)

Benefits
• Zone B and C: Refund of 30% of Net SGST.
• Zone D and E: Refund of 50% of Net SGST.
• Note: Cumulative refund of SGST shall not exceed 75% of fixed capital investment.

Eligibility Criteria
1. - The business/organization should be a Micro/ Small/ Medium Enterprise.
2. - The business/organization should belong to the manufacturing sector.
3. - The business/organization should have started production on or after 1st April 2019.
4. - The business/organization should be in the private sector/ cooperative sector/ joint sector undertaking or should be a company/ undertaking owned and managed by the State Government or the Industrial SHGs.
5. - The Date of Commencement of Commercial Production (DOCCP) should be between 1st April 2020 to 31st March 2025.

Required Documents
• Copy of the Memorandum of Association and Articles of Association authenticated by the Registrar of Companies / partnership deed (wherever applicable).
• A statement on the name and address of the Directors / Partners / Owners of the enterprise / Members of Cooperative or Self Help Groups, as applicable.
• Copy of approved project report.
• A copy of loan sanctions letter and disbursement letter issued by financial institutions / banks.
• A copy of the audited balance sheet for the last 2 years wherever applicable.
• A list of plants and machinery with original value along with copies of the bills, money receipts.
• Existing manufacturing activities in West Bengal stating items, annual approved capacity, annual production during the last three years (in quantity and value in Rs. Lakh), if applicable.
• Copy of the land deed (wherever applicable). In case of rented /leasehold land / buildings, copy of rent agreement and receipt /lease agreement.
• Copy of mutation & conversion certificate of land/ building.
• Copy of valid consent to operate certificate from the WBPCB.
• Copies regarding SGST.
• Copy of trade licence.
• Copy of first electricity bill (wherever applicable).
• Copy of acknowledgement of Udyog Aadhaar Registration.
• Copy of SC / ST certificate wherever applicable.
• Copy of other statutory licenses/certificates, if necessary.
• Self declaration as per para 7.1(vi) of the Scheme.
• Scheduled of the land.
• A receipt copy of the application submitted to the Commissioner, Commercial Tax , West Bengal on SGST.

Frequently Asked Questions
Q: What areas are classified under Zone A for the purpose of determining incentives?
A: Zone A includes the Kolkata Municipal Corporation Area, all municipal areas of North 24-Parganas, all municipal areas of South 24-Parganas, and all municipal corporation and municipal areas of Howrah.

Q: Which districts fall under Zone B for incentive classification?
A: Zone B comprises districts such as Hooghly, North 24 Parganas (excluding municipal areas and Sundarban areas), South 24 Parganas (excluding municipal areas and Sundarban areas), Howrah (excluding corporation and municipal areas), Siliguri Municipal Corporation, Paschim Medinipur, Purba Medinipur, Purba Bardhaman, Paschim Bardhaman, and Nadia.

Q: What are the eligibility criteria for incentives under Banglashree for MSMEs?
A: Micro, small, or medium enterprises in the manufacturing sector that commence commercial production between 1st April 2019 and 31st March 2025 are eligible. Existing enterprises are also eligible for incentives for project expansion.

Q: Which enterprises are not eligible for Banglashree for MSMEs?
A: Enterprises that commenced production before 1st April 2019, those registered and received incentives under other state incentive schemes, or those that applied for incentives under other schemes within the stipulated date are not eligible.

Q: What is the timeline for submitting the first incentive application under Banglashree for MSMEs?
A: Enterprises must submit their first incentive application to the General Manager, District Industries Centre, or Officer-In-Charge Sub-DIC, Siliguri within 12 months from the date of commencement of commercial production or within 12 months from the date of the notification, whichever is later.

Q: Can enterprises in the manufacturing sector other than micro, small, and medium enterprises avail of Banglashree for MSMEs?
A: No, the scheme is specifically applicable to micro, small, and medium enterprises in the manufacturing sector.

Q: What is the procedure for claiming the Subsidy?
A: Enterprises need to apply for the subsidy along with the required documents to the designated authorities as per the guidelines provided by the concerned department or agency.

Q: What is the significance of the classification of areas into different zones for the scheme?
A: The classification helps in determining the quantum of incentives available for projects based on their location, with higher incentives provided for projects in backward areas.

Q: Can enterprises avail of incentives under both Banglashree for MSMEs and other state incentive schemes simultaneously?
A: No, enterprises cannot avail incentives under both schemes simultaneously. They must choose one scheme based on their eligibility and requirements.

Q: Is there any provision for enterprises that have already received incentives under other state schemes but wish to expand their projects?
A: Yes, existing enterprises are eligible for incentives under Banglashree for MSMEs for project expansion, subject to the conditions specified in the scheme.

Q: How does the State Government verify the eligibility of enterprises for the incentives?
A: The eligibility of enterprises is verified based on the documents submitted along with the application, and inspections may be conducted by designated authorities if required.

Q: What measures are in place to prevent misuse of the subsidy scheme?
A: Strict guidelines, documentation requirements, and verification procedures are in place to ensure that subsidies are availed by eligible enterprises for genuine purposes only.

Q: Is there any provision for enterprises to appeal if their application for incentives is rejected?
A: Yes, enterprises have the right to appeal against the rejection of their application, and there is a designated process for handling such appeals.