GST Subsidy in Gujarat – Helping Businesses Access Government Benefits
Providing Financial Assistance / Incentive To Micro, Small, And Medium-Scale Enterprises, Large Enterprise As Well As Mega Enterprise On The Net SGSTs Paid To The State Government
Consult Us Now
GST Subsidy in Gujarat: How We Help Your Business?
The Gujarat Government has launched a new subsidy scheme that allows Micro, Small, and Medium-scale enterprises, Large enterprises as well as Mega enterprises to earn incentives or rewards on the SGST paid through a cash ledger. It is usually calculated as a percentage ( 5% to 7.5% ) of Investment made in a Project (excluding Land & Intangible Assets) by the enterprise or 80 % to 100% percentage of Net State Government GST paid on sales of a product after setting of Input Tax Credit whichever is lower. GST subsidy can be claimed for 10 consecutive years.
At SDS Fin Advisory LLP., we are concerned with all the related calculations that need to be made before applying for the subsidy on SGST, preparation of the related documents including tax files, incomes and sales, and others, and submitting the SGST subsidy claims on time with no delay. With a formidable team of expert MBA and CA professionals, we are familiar with the complex procedures of submitting claims related to GST subsidy in Gujarat. We can assure you that with us, the claims will be disbursed timely and your business will have a consistent cash flow with no compromise.
Key Benefits of Availing GST Subsidy
1. Improved Cash Flow and Higher Profitability
Regardless of how small your business is, the calculated GST to be paid to the government will be pretty high. Paying such a high tax amount during the initial years of the business can prove to be extremely difficult, especially due to the huge upfront operational costs involved. So, by filing a GST subsidy, you can earn a consistent cash flow for your business as a significant tax amount will be rewired to your account as an incentive. Additionally, it will also make your business more profitable by reducing the taxation burden.
2. Increased Competitiveness
With GST subsidy in Gujarat, your business will become more competitive since the cash outflow will be reduced significantly. The incentive you receive as a part of the subsidy claim can be used further for maintaining the operations or expanding your business with a capital investment. Staying ahead in the market is the key to success, especially for small and medium-scale businesses. The claims for GST subsidies will help you achieve the necessary monetary competitiveness to keep the business afloat.
3. Reduced Financial Burden
Paying a high output liability in the form of Goods and Service Tax can incur a huge financial burden, especially for small-scale businesses. To reduce this financial burden, filing for the subsidy scheme is the best solution. At SDS Fin Advisory LLP, we will help you with the claims, ensuring timely disbursement of the incentives to your account without any further compromise.
Types of GST Subsidies Offered
The Government of Gujarat launched the Aatmanirbhar Gujarat Scheme in 2022 to support businesses and enterprises of different sizes via financial assistance, employment generation, and directed focus on the local manufacturing industry. In this scheme, GST subsidy in Gujarat is now available for businesses, allowing them to reduce the financial burden and establish a consistent cash inflow. Below are three major types of subsidy plans available under this scheme.
- SGST Subsidy under the Aatmanirbhar Gujarat Scheme for assistance to MSMEs 2022
| Category 1 Taluka | 100% of Net SGST for 10 Years up to 7.5% of eFCI per year |
| Category 2 Taluka | 90% of Net SGST for 10 Years up to 6.5% of eFCI per year |
| Category 3 Taluka & Municipal Corp. Areas | 80% of Net SGST for 10 Years up to 5% of eFCIper year |
- SGST Subsidy under the Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector
| Category of Taluka | General Sector | Thrust Sector |
|---|---|---|
| Category 1 Taluka | 100% of Net SGST for 10 Years up to 7.5% of eFCI per year | 100% of Net SGST for 10 Years up to 8% of eFCI per year |
| Category 2 Taluka | 90% of Net SGST for 10 Years up to 6.5% of eFCI per year | 90% of Net SGST for 10 Years up to 7% of eFCI per year |
| Category 3 Taluka & Municipal Corp. Areas | 80% of Net SGST for 10 Years up to 5% of eFCI per year | 80% of Net SGST for 10 Years up to 5.5% of eFCI per year |
- eFCI - Eligible Fixed Capital Investment
- SGST Subsidy under the Aatmanirbhar Gujarat Scheme for assistance to Mega Industries
100% Reimbursement of net SGST subject to a maximum of 0.9% of eFCI per annum for 20 years.
Attachments
- Taluka Category List - 5. Taluka Category.pdf
- General & Thrust Sector List for Large Industries and Thrust Sector - Large Sector Thurst Sector List.pdf
- Thrust Sector List for Mega Industries - Mega Sector Thurst Sector List.pdf
Simplify Your GST Subsidy
Process Today!
Contact us to ensure a smooth and
hassle-free application experience.
Frequently Asked Questions
1. What are the eligibility criteria for GST subsidy application?
If you want to know more about the eligibility criteria to apply for GST subsidy in Gujarat, delay no more and connect with our consultants. We will walk you through the entire procedure, explaining all the documents needed for subsidy submission and also the potential challenges.
2. Who can apply for a GST subsidy?
Both large-scale businesses and MSMEs involved in manufacturing will be eligible to apply for the GST subsidy scheme.
3. Do I need to take a bank loan to become eligible for a GST subsidy application?
To become eligible for the GST subsidy in Gujarat, you won’t have to take any bank loan.