Haryana notifies tax incentives to boost industry

The Haryana government has notified the "Investment Subsidy on VAT/ State GST" for a host of industry segments, including MSMEs, as part of steps to bring down cost of doing business in the state.
Investment subsidy on VAT/SGST has been announced for ultra mega projects, mega projects, large units, Micro, Small and Medium and sectors of textiles, agro and food processing, footwear and defence or aerospace or electronics or auto components or Railways, an official release said.
"It was felt that there was a need to provide one of the major fiscal incentives of investment subsidy on VAT/ SGST for reducing cost of doing business to make the industry competitive and sustainable," the Haryana Industries and Commerce Department said in a release.

"For instance the Ultra Mega Projects shall be offered special package of incentives by Haryana Enterprises Promotion Board including mixed land use, allotment of land at a price to be decided by the Government throughout the State. The quantum of investment subsidy on VAT/SGST shall be decided by the Haryana Enterprises Promotion Board".
In case of mega projects, 75 per cent of VAT/SGST would be net paid for first five years, 35 per cent for next three years in 'D' category blocks; 50 per cent for first five years, 25 per cent for next three years in 'C' category blocks; 30 per cent for first five years, 15 per cent for next three years in 'B' category blocks from the date of commencement of commercial production with cap of 100 per cent of new fixed capital investment, the release said.

A spokesman said that Haryana Enterprise Promotion Board may also consider for providing special package of incentives for mega projects having potential to develop ancillary enterprises.

He said that in case of Large units 75 per cent of VAT/SGST would be net paid for first seven years, 35 per cent for next three years in 'D' category blocks; 50 per cent for first five years, 25 per cent for next three years in 'C' category blocks from the date of commencement of commercial production with cap of 100 per cent of new fixed capital investment for new enterprises.
"The 75 per cent of VAT/SGST will be net paid in 'D' category blocks for seven years, 50 per cent in 'C' category blocks for five years on 50 per cent additional investment in plant and machinery for expansion or diversification of existing unit with cap of 100 per cent of new fixed capital investment on expanded Fixed Capital Investment (FCI)," he said.

He said that similarly in case of Micro, Small and Medium Enterprises, 75 per cent of VAT/SGST would be net paid for first seven years, 35 per cent for next three years in 'C' a 'D' category blocks; 50 per cent for first five years, 25 per cent for next three years in 'B' category blocks from the date of commencement of commercial production with cap of 100 per cent of new fixed capital investment for new enterprises.
In case of Mega, Large and MSMEs of Defence/Aerospace/ Electronics/ Auto Components sector, 75 per cent of VAT/SGST would be net paid for first seven years, 35 per cent for next three years in 'B', 'C' a 'D' category blocks from the date of commencement of commercial production with cap of 100 per cent of new fixed capital investment for new enterprises, he said.