Incentives To Encourage Purchases From Local Suppliers Scheme

Description
The scheme "Incentives To Encourage Purchases From Local Suppliers Scheme" was launched by the Directorate of Industries, Trade and Commerce DITC , Government of Goa. The scheme aims to encourage consumption through local purchases and encourage economies of ancillary units, local Micro, Small and Medium Enterprises MSMEs as also traders including those in Horticulture business/Food Processing. The scheme provides reimbursement to the extent of 2% of the cost of local purchases consumed by the eligible unit, up to a maximum of ₹5,00,000/- per year, and the unit may avail benefit for five consecutive years from the date of first application. The applications for this scheme are accepted annually, requiring the unit to apply in the specified format after the closure of every financial year.

Exclusions
• Natural resources (e.g., water, air, and the like).
• Major and Minor minerals (e.g., ore, sand, etc).
• Alcoholic beverages.
• Tobacco and tobacco products.

Benefits
• Reimbursement to the extent of 2% of the cost of local purchases consumed by the eligible unit.
• The maximum reimbursement is limited to ₹5,00,000/- per year.
• The local purchases mean every industrial input, including consumables, purchased from Goa (whether manufactured in Goa or not) except service.
• The value excluding Goods and Services Tax (GST) shall be considered for the calculation.
• The unit may avail benefit under this scheme for five consecutive years from the date of the first application.
• The benefits under this scheme are subject to budgetary allocation.
• No Promissory Estoppel shall be applicable if benefits are discontinued in case allocation is exceeded.
• The applicant shall allow and/or grant free access to any official authorized by the Directorate of Industries, Trade and Commerce for conducting inspection/supervision of the unit or the registers or holding discussions with the employed employees for ensuring proper utilisation of the financial incentives/subsidies granted by the State Government.
• The applicant shall time to time or as and when required submit to the Directorate of Industries, Trade and Commerce all the necessary reports, information and documents specified under the scheme or as required or directed by the Directorate of Industries, Trade and Commerce (DITC).
• If it is found that the information and documents submitted are incorrect, or the financial incentive was obtained by misrepresenting facts or submitting furnishing false information, the Government of Goa/Directorate of Industries, Trade and Commerce shall revoke the subsidy.
• The applicant shall pay back to the government the financial incentives received, or the same shall be recoverable as arrears of land revenue under the provisions of the Land Revenue Code 1968 and/or the Goa, Daman, Diu Public (Recovery & Dues) Act 1986.
• In the event of breach of any of the terms and conditions of this Declaration, the Government shall be entitled to recover the said financial incentives as arrears of land revenue under the provisions of the Land Revenue Code 1968 and/or the Goa, Daman, Diu Public (Recovery & Dues) Act 1986.

Eligibility Criteria
1. - The industrial unit must be under the white, green, or orange category.
2. - The industrial unit must be a micro/small or medium manufacturing unit.
3. - The applicant must purchase a minimum 50% (in value) of its raw material/ component/ tools etc. (input requirement for production) from local sources/ manufacturers.
4. - The applicant must be registered under the Umbrella Scheme (Goa State Incentives to Encourage Investments Scheme).
5. - The applicant must not have claimed similar benefit under any other scheme/program of the Government of Goa.
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Application Process
Step 1: Step 1: The interested applicant should take a printout of the prescribed format of the application form. Alternatively, the applicant can obtain the specified application form and the Affidavit cum Declaration format, typically provided by DITC o…
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Step 1: The interested applicant should take a printout of the prescribed format of the application form. Alternatively, the applicant can obtain the specified application form and the Affidavit cum Declaration format, typically provided by DITC or accessible via official channels.

Step 2: Step 2: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required).
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Step 2: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required).

Step 3: Step 3: Submit the duly filled and signed application form along with the documents, within the prescribed period (if any), to the Directorate of Industries, Trade and Commerce. The application form must be signed by the authorized representative,…
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*The application must be filed after the closure of every financial year.
Following the review by DITC, and subject to budgetary allocation, the eligible unit shall be considered for reimbursement.
Feedback/Comments on the Scheme may be sent on [email protected] with the subject "Feedback/Comments on Incentives to Encourage Purchases From Local Suppliers Scheme".

Required Documents
• A Self-Attested Copy Of Registration Under Umbrella Scheme.
• Affidavit/Self Declaration In The Format Provided.
• Self-Certified Copies Of Bills Of Purchase From Local Sources.
• Statement Of Local Purchases Along With Vouchers Bearing Goods And Services Tax Payment Details (State component) (As Applicable).
• Final Accounts Of The Claim Year.
• A Statement Certified By Chartered Accountant (CA) Stating That Payment Towards Purchases Has Been Affected, That The Purchases Are Made Locally Within Goa And Have Been Used As Raw Material For The Purpose Of Manufacturing By The Applicant Unit.
• A Certificate From Chartered Accountant Certifying That No Other Claim For Similar Benefit Has Been Made Under Any Other Scheme Or Program Of Government Of Goa.
• A Copy Of Partnership Deed, Memorandum Of Association/ Articles Of Association (As The Case May Be).
• Copy Of Resolution Number (Required for authorization to swear and submit the affidavit).
• Passport Size Photograph Of The Applicant.

Frequently Asked Questions
Q: If my manufacturing input requirements involve components or materials related to tobacco, will those purchases count towards the local sourcing percentage?
A: Purchases involving tobacco and tobacco products are explicitly listed in the negative list (Schedule &#39;A&#39;) and are thus not considered eligible inputs for the purpose of the scheme calculation.
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Q: Is it necessary for the applicant unit to possess an existing registration under another comprehensive financial support framework to be considered eligible?
A: Yes, the scheme is governed by and requires the unit to be registered under the Goa State Incentives to Encourage Investments Scheme, 2017, also known as the Umbrella Scheme.
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Q: What specific pollution classification categories must my manufacturing facility fall under to qualify for financial incentives under this program?
A: Your manufacturing facility must be categorized specifically as a white, green, or orange category unit to meet the mandatory requirements of the scheme.
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Q: What is the maximum duration, in terms of years, that an eligible manufacturing unit is permitted to receive financial benefits under this particular program?
A: The eligible unit may avail the financial benefit under this scheme for a period of five consecutive years, starting from the date when the unit submits its first successful application.
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Q: Does the list of excluded items for calculating the required percentage include raw materials classified as major or minor mineral products?
A: Yes, major and minor minerals, such as ore or sand, are specifically excluded and shall not be considered eligible as local raw material for the purposes of this scheme.
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Q: Should I include the value of all purchased raw materials when calculating the minimum local procurement percentage required for meeting the eligibility threshold?
A: No, you should exclude the value of any items that are specifically listed in the designated &#39;negative list&#39; (Schedule ‘A’) when calculating the required percentage of local purchases.
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Q: What is the minimum required scale of operation for a business, in terms of size classification, to be considered a viable applicant for these purchasing benefits?
A: The applicant must be categorized as a micro, small, or medium enterprise, and must be primarily operating as a manufacturing unit to qualify for the scheme benefits.
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Q: Am I required to submit ongoing documentation or reports to the Directorate of Industries, Trade and Commerce even after the initial application and sanction of the benefit?
A: Yes, you must submit all necessary reports, information, and documents specified under the scheme, or as required and directed by the Directorate of Industries, Trade and Commerce (DITC), from time to time.
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Q: Are purchases involving basic environmental inputs, such as resources like water or air, eligible to be counted toward the local purchase subsidy claim?
A: No, purchases of natural resources, which includes items such as water and air, are explicitly listed in the negative list and are therefore ineligible for the subsidy calculation.
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Q: If I have previously received, or am currently receiving, comparable financial assistance from another program offered by the Government of Goa, can I still apply?
A: The scheme is not applicable if you have already claimed or are receiving a similar financial benefit under any other scheme or program of the Government of Goa.
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Q: How exactly is the term "local purchases" defined for the purposes of calculating the reimbursement amount based on industrial inputs?
A: Local purchases encompass every industrial input, including consumables, purchased from within Goa, regardless of where the item was originally manufactured, but explicitly excludes any service.
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Q: When calculating the total cost of purchases eligible for reimbursement, should the calculation include the amounts paid for Goods and Services Tax?
A: No, for the specific purpose of calculating the subsidy, only the value of the purchase excluding the Goods and Services Tax (GST) shall be considered by the Directorate of Industries, Trade and Commerce.
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Q: If my manufacturing process involves components or materials related to alcoholic beverages, will those purchases count towards the local sourcing percentage?
A: No, items related to alcoholic beverages are listed in Schedule &#39;A&#39; and are ineligible for inclusion when determining the total value of eligible local raw material purchases.
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Q: After receiving the financial incentive, what continuing obligation do I have regarding inspection of the unit or registers by the implementing authority?
A: You shall allow free access to any official authorized by the Directorate of Industries, Trade and Commerce for conducting inspection, supervision, or holding discussions to ensure proper utilization of the financial incentives granted.
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