About this business scheme
“Subsidy for State Goods and Services Tax (SGST)” incentive under the “Incentive Scheme for MSMEs in Powerloom Sector” scheme implemented by the Dept. of MSME & T, Government of West Bengal, aims to provide refund of Net SGST paid to the Government of West Bengal for its approved project.
The scheme “Subsidy for State Goods and Services Tax (SGST)” is a sub scheme under the “Incentive Scheme for MSMEs in Powerloom Sector”. It was launched on 1st January, 2022, by the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal, and shall remain valid upto 31st December, 2024.
Objective of the "Incentive Scheme for MSMEs in Powerloom Sector”:
The objective of the Scheme is to extend fiscal incentives for installation of New age shuttleless Powerlooms by MSMEs in Textile sector with a view to boost production of the improved quality fabrics and to create a sustainable ecosystem for MSMEs in Textile sector which can maximize the utilization of resource, generate new employment and widen the area of operation to make the State emerge as the leader in Powerloom sector in country.
Objective of the "Subsidy for State Goods and Services Tax (SGST)" Sub-scheme:
Through this incentive, an eligible micro, small and medium enterprise in the Powerloom sector for its approved project will be entitled to refund of Net SGST paid to the Government of West Bengal for 8 years from the date of commencement of commercial production.
Benefits at a glance
| Scheme name | Incentive Scheme for MSMEs in Powerloom Sector: Subsidy for State Goods and Services Tax (SGST) (ISMPSSSGST) |
|---|---|
| Launched by | Micro, Small & Medium Enterprises and Textiles Department |
| Launch year | 2022 |
| Benefit type | Cash (money paid to your bank account) |
| Category | Business |
| Level / State | State · West Bengal |
| Official portal | wbmsmet.gov.in (link at the end of this page) |
Key facts
| Scheme for | Infra |
|---|---|
| Application mode | Offline |
| Last date | Not given in the official listing |
| DBT (direct bank transfer) | No |
| Age | 18 to 80 years |
Who can apply (quick check)
- 👤All genders
- 🎂Age 18 to 80 years
- 📝Offline
Quick check from official data. Full conditions are in the Eligibility section.
What you receive
Zone B & C: 30% of Net SGST paid for 8 years from the date of commencement of commercial production.
Zone D & E: 50% of Net SGST paid for 8 years from the date of commencement of commercial production.
Note: Cumulative refund of SGST shall not exceed 75% of Fixed Capital Investment.
Who qualifies
- The Scheme shall be generally applicable to all micro, small, and medium enterprises (MSMEs) in the powerloom sector.
- Enterprises must have started production from 01.01.2022 to 31.12.2024.
- Enterprises should have executed a Four-party agreement with the Directorate of Textiles, Financial institution and Tantuja.
- The units should be a private sector, cooperative sector and joint sector undertaking as also companies/ undertakings owned and managed by the State Government and the Industrial SHGs.
- The project should be covered by a detailed feasibility report/project prepared for the purpose.
- The project should have been approved and sanctioned by a Central Financial Institution or Commercial Banks or State Financial Institutions.
Who is not eligible
- 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 certificate 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 31.12.2021 and applied for incentive under the respective Incentive Scheme of the State within the stipulated date (The claim will be governed by the respective Incentive Scheme of the State).
Papers to keep ready
- A 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.
- Copy of agreement.
- A copy of the audited balance sheet for the last 2 years wherever applicable.
- 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 Udyam 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 Official Scheme Guidelines.
- A receipt copy of the application submitted to the Commissioner, Commercial Tax , West Bengal on SGST.
Registration walkthrough
Offline
- An eligible enterprise shall apply in prescribed format in FORM-E to the Commissioner of Commercial Taxes, West Bengal at the close of each year requesting him to certify the total amount of SGST paid (excluding input credit) by it in respect of goods manufactured and sold during the year in respect of which the application has been made.
Time frame for submission of first Application:
Within 12 months from the date of commencement of commercial production (01.01.2022 to 31.12.2024).
Address:
THE COMMISSIONER, COMMERCIAL TAXES, DIRECTORATE OF COMMERCIAL TAXES 14, BELIAGHATA ROAD, KOLKATA-700015
Important dates
| Launch / start | 01 Jan 2022 |
|---|
Terms used in this scheme
- Zone-A
Kolkata Municipal Corporation Area, All municipal areas of North 24- Parganas, All municipal areas of South 24-Parganas, All municipal Corporation and municipal areas of Howrah.
- Zone-B
Districts of 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, Municipal Corporations/ Municipal Areas of Paschim Medinipur, Purba Medinipur, Purba Bardhaman, Paschim Bardhaman and Nadia.
- Zone-C
Districts of Purba Bardhaman, Paschim Bardhaman (excluding municipal corporation/ municipal areas), Purba Medinipur (excluding municipal corporation/ municipal areas), Nadia (excluding municipal corporation/ municipal areas), Malda, Jalpaiguri, Murshidabad and Darjeeling (excluding Siliguri Municipal Corporation), Kalimpong, Alipurduar.
- Zone-D
Districts of Birbhum, Purulia, Bankura, Paschim Medinipur (excluding municipal corporation/ municipal areas), Uttar Dinajpur, Dakshin Dinajpur, Sundarban Areas of South and North 24 Parganas and Jhargram.
Frequently asked questions
What areas are classified under “Zone A” for the purpose of determining incentives?
“Zone A” includes Kolkata Municipal Corporation Area, All municipal areas of North 24- Parganas, All municipal areas of South 24-Parganas, All municipal Corporation and municipal areas of Howrah.
Which districts fall under “Zone B” for incentive classification?
“Zone B” comprises Districts of 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, Municipal Corporations / Municipal Areas of Paschim Medinipur, Purba Medinipur, Purba Bardhaman, Paschim Bardhaman and Nadia.
What is the primary eligibility criteria for incentives under the “Incentive Scheme for MSMEs in Powerloom Sector”?
The scheme shall generally be applicable to all micro, small and medium enterprises in the powerloom sector which have started production on or after 1st day of January, 2022 and have executed a Four-party agreement between the enterprise, Tantuja, Directorate of Textiles & Financial institution .Terms and conditions as a part of this agreement will be prescribed by the Department of MSME & T, WB in due course of implementation of the scheme.
How should an enterprise maintain its accounts to ensure it can clearly show the amount of SGST paid (excluding input credit) for sales of items manufactured under an approved project, in order to qualify for this sub-scheme?
The enterprise shall maintain the accounts in such a manner that at any time as may be necessary it can show clearly the amount of SGST paid (excluding input credit) in respect of sales made by it of the item(s) manufactured as per approved project to which it is entitled to refund of SGST paid (excluding input credit) under Incentive Scheme for MSMEs in Powerloom Sector.
How does the Directorate of Textile scrutinize and conduct physical inspection of the enterprise upon receiving its application for incentives?
On receipt of application for incentive from an enterprise the Directorate of Textile shall make, as expeditiously as possible and not later than 15 days, scrutiny of/ enquiry into particulars furnished by the enterprise and cause physical inspection of the enterprise through the Officers of the Directorate to ascertain Fixed Capital Investment proposed to be made in Plant and Machinery (new age shuttle less loom) by it.
What is the procedure for claiming the Subsidy?
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.
What is the significance of the classification of areas into different zones for the scheme?
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.
Would an eligible enterprise that has availed of incentives or subsidies under any other state government incentive scheme be eligible for benefits under the Incentive Scheme for MSMEs in the Powerloom Sector for other specified items?
Yes, an eligible enterprise which has availed of incentive/ subsidy in respect of any of the items specified under any other Incentive of State Govt. shall also be eligible to get the benefits of other items only under Incentive Scheme for MSMEs in Powerloom Sector subject to fulfillment of terms and conditions of the Scheme.
How does the Directorate of Textiles determine the eligibility of enterprises for projects financed from their own resources?
In case of projects with arrangement of finance from own resources, eligibility of the enterprise shall be considered by the Directorate of Textiles according to the declaration of the enterprise regarding source of finance supported by a certificate issued by a Chartered Accountant as per Annexure-VI provided the Directorate of Textiles is satisfied about the technical specification of the machineries installed and the arrangement of such finance.
What is an “Approved project”?
"Approved Project" means the industrial project of a unit/ an expansion unit in the Powerloom sector which should be approved before implementation of the project in two steps - the technical part of the project should be approved before implementation of the project by the Directorate of Textile under the Deptt. of Micro, Small & Medium Enterprises and Textiles, Govt. of West Bengal and subsequently should be approved for its financial part by any commercial Banks/ Financial Institution (Central and State)/ Cooperative Banks/ scheduled banks approved by RBI/ RRBs financing the project.
What measures are in place to prevent misuse of the subsidy scheme?
Strict guidelines, documentation requirements, and verification procedures are in place to ensure that subsidies are availed by eligible enterprises for genuine purposes only.
What action will the Directorate of Textile take if an application is determined to be ineligible for incentives under the Incentive Scheme for MSMEs in the Powerloom Sector?
If any application is found to be not eligible for incentives under the Incentive Scheme for MSMEs in Powerloom Sector, Directorate of Textile will issue a letter of rejection to the applicant enterprise.
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