The “Subsidy for State Goods and Services Tax (SGST)” is a sub-scheme under the “Incentive Scheme for MSMEs in Powerloom Sector” launched on 1st January 2022 by the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal. This scheme aims to provide SGST reimbursement to MSMEs in the powerloom sector for up to 8 years, encouraging the use of new-age shuttleless powerlooms and promoting high-quality fabric production.
Scheme Key Highlights (Short Summary)
• Sub-scheme under MSME Powerloom Incentives
• Validity: 1st Jan 2022 to 31st Dec 2024
• SGST reimbursement for 8 years
• Encourages improved textile production using modern looms
Benefits
• Zone B & C: 30% of Net SGST for 8 years
• Zone D & E: 50% of Net SGST for 8 years
• Cumulative refund limit: Not more than 75% of Fixed Capital Investment
Eligibility
• MSMEs engaged in powerloom sector in private, cooperative, or joint sector
• Enterprises must have commenced production between 01.01.2022 and 31.12.2024
• Should execute a Four-party agreement with Directorate of Textiles, Financial Institution, and Tantuja
• The project must be backed by a detailed feasibility report
• Must be approved by Central/State Financial Institutions or Commercial Banks
Exclusions
• Units already covered or benefitted under any other state incentive scheme
• Enterprises with production started before 31.12.2021
• Units issued eligibility certificates under other schemes but haven’t claimed/disbursed benefits
Application Process
Offline
• Submit application in Form-E to:
The Commissioner, Commercial Taxes
Directorate of Commercial Taxes,
14, Beliaghata Road, Kolkata-700015
• Time Frame: Within 12 months from the date of commencement of commercial production
Documents Required
• Memorandum of Association & Articles / Partnership Deed
• Details of Directors / Partners / Owners
• Approved Project Report
• Loan Sanction and Disbursement Letters
• Copy of Agreement with Directorate of Textiles
• Audited Balance Sheets (last 2 years)
• Details of manufacturing activities (past 3 years if applicable)
• Land documents / Rent or Lease Agreement
• Mutation & Conversion Certificates
• Valid Consent to Operate (WBPCB)
• SGST documents
• Trade Licence
• Electricity Bill (First)
• Udyam Registration Certificate
• SC / ST Certificate (if applicable)
• Other statutory licenses
• Self-declaration (as per Para 7.1(vi) of scheme guidelines)
• Receipt copy of submission to Commercial Tax Commissioner
Frequently Asked Questions (FAQs)
Q: What areas are classified under Zone A or B for incentives?
Zone classifications are defined by the State for determining levels of incentive support. Zone B includes moderately developed districts.
Q: Who is eligible for this SGST subsidy?
MSMEs in the powerloom sector that began production between Jan 2022–Dec 2024 and have signed the required Four-party agreement.
Q: How is the refund of SGST processed?
Applicants must submit Form-E annually to the Commercial Taxes Department, detailing the Net SGST (excluding input credit).
Q: What does the 75% limit mean?
The total SGST subsidy over 8 years must not exceed 75% of the Fixed Capital Investment.
Q: What if the unit has already availed other state subsidies?
Such units are not eligible to claim SGST subsidy under this scheme for the same project.
Q: What is a Four-party agreement?
An agreement signed between the enterprise, Directorate of Textiles, Financial Institution, and Tantuja, establishing project terms.
Q: How is misuse prevented?
Eligibility, project execution, and claim details are verified through physical inspections and documentation reviews.
Q: What happens if an application is found ineligible?
The Directorate of Textiles may reject the claim and initiate recovery or penal action, if applicable.