Banglashree SGST Subsidy for MSMEs – Up to 50% Refund for 8 Years!

The “Subsidy for State Goods and Services Tax (SGST)” is a sub-scheme under the Banglashree for MSMEs, launched by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal on 1st April 2020. This scheme remains in force until 31st March 2025.

Objectives of the Scheme

• Encourage setting up of MSMEs across the state

• Promote a balanced industrial ecosystem in West Bengal

• Create employment opportunities and increase resource utilization

• Support eligible enterprises by refunding net SGST paid to the West Bengal Government

Benefits

• Refund of Net SGST Paid for 8 years from the Date of Commencement of Commercial Production (DOCCP)

• Refund percentages:

  • Zone B & C: 30% of Net SGST

  • Zone D & E: 50% of Net SGST

• Cumulative refund will not exceed 75% of Fixed Capital Investment

Eligibility

• Must be a Micro, Small or Medium Enterprise (MSME)

• Belong to the manufacturing sector

• Must have started production on or after 1st April 2019

• Must operate in the private, cooperative, joint sector, or be a State Govt.-owned enterprise or SHG

Exclusions

Enterprises not eligible:

• Registered under previous state incentive schemes

• Commenced production before 01.04.2019 and applied under old incentive schemes

Negative List of Industries:

• Sponge Iron Factory

• Brick manufacturing (except Fly Ash, Sand Lime, Refractory Bricks)

• Others as notified by the State Government

Exclusions in Fixed Capital Calculation:

• Maintenance tools, spare parts, consumables

• R&D and pollution control equipment

• Power sets, generators, wiring, circuit systems

• Second-hand machinery

• Fire safety equipment, storage tanks, etc.

Application Process

Online via Shilpasathi Portal

Registration

1. Visit Shilpasathi Portal → Click ‘Apply Online’

2. Click ‘Create New’ → Select Applicant Type → Fill in registration details

3. Submit and complete user registration

Application Steps

1. Login to your account

2. Go to ‘All Services’ → Select ‘MSME Incentive’

3. Click ‘Create CAF’ → Apply Online

4. Fill eligibility form → Submit

5. Fill Common Application Form (CAF) → Submit

6. Access “Form A” and proceed to “Apply Subsidy” section

7. Enter year-wise SGST refund details

8. Upload all documents → Preview → Verify & Submit

9. Note the Application Reference Number for tracking

Submission Deadline:
Within 12 months from DOCCP or from date of notification of Banglashree – whichever is later

Documents Required

• Memorandum & Articles of Association / Partnership Deed

• List of Directors/Partners/Owners

• Approved project report

• Loan sanction & disbursement letters

• Audited balance sheets (last 2 years)

• Machinery invoices and receipts

• Land ownership or rent/lease documents

• Land mutation & conversion certificate

• Consent to operate from WBPCB

• SGST-related documents

• Trade licence

• First electricity bill

• Udyog Aadhaar Registration

• SC/ST certificate (if applicable)

• Other statutory licenses (if required)

• Self-declaration as per Para 7.1(vi)

• Scheduled land documents

• Receipt of application submitted to Commissioner, Commercial Tax, WB

Helpdesk

Address: Protiti, 23, Abanindranath Tagore Sarani (Camac Street), Kolkata – 700017
Phone: +91 33 2255 3700
Fax: +91 33 2255 3737
Email: [email protected]
Technical Queries: [email protected]
Helpline: 1800-345-5562 (Toll-Free)

Sources and References

• Guidelines (Kolkata Gazette)

• User Manual

• FAQs