Arunachal VAT Exemption 2025
Department of Industries, Government of Arunachal Pradesh · Central government
Arunachal Pradesh offers new or expanding industrial units a 99% sales tax (VAT) exemption for seven years.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
Clause 7.8 of the Arunachal Pradesh Industrial Development and Investment Policy, 2025 grants eligible industrial units a 99% Sales Tax (VAT) exemption. This benefit runs for seven years, counted from the date commercial production begins.
Two categories of units qualify: new units that meet the eligibility criteria, and existing units carrying out substantial expansion.
This incentive differs in nature from the policy's reimbursement-based incentives. It operates as a standing exemption instead of a cash claim, meaning the benefit materialises as tax the unit is not required to pay over the seven-year period. Its worth therefore rises in step with the unit's turnover.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not required
- GST registration
- Not specified
- Where the business may be based
- Arunachal Pradesh
- New units that qualify under the Andhra Pradesh Industrial Development and Investment Policy, 2025 - Units carrying out substantial expansion - The exemption applies for seven years, counted from the date commercial production begins
How to apply
- Secure eligibility certification for the unit as prescribed under the AP Industrial Development and Investment Policy, 2025 - Note down the date on which commercial production commenced, since the seven-year period is counted from this date - File the application with the Department of Industries via the Arunachal Pradesh single window clearance portal - Furnish the unit registration, evidence of production commencement and tax registration particulars
Frequently asked questions
How large is the exemption?
99% of Sales Tax (VAT).
How long does it last?
The subsidy is available for seven years, counted from the date commercial production begins.
Does an expansion qualify?
Yes. Both eligible New Units and units carrying out substantial expansion are covered.
Is there a monetary cap?
The policy clause sets no rupee ceiling on the benefit; what the unit receives is the tax it would otherwise have paid over the seven-year period.
Sectors
- Arunachalpradesh
- Vatexemption
- Taxexemption
- Stateincentive
- Industrialpolicy2025
Details last verified on 18 September 2026. Source: the issuer's published information.