Bihar SC/ST Tax Reimbursement Grant
Department of Industries, Government of Bihar · Central government
Bihar reimburses SC/ST entrepreneurs' new industrial units up to 92% of VAT/CST/Entry Tax, capped by project cost.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The VAT/CST/Entry Tax Reimbursement scheme operates under the Bihar Industrial Investment Promotion Policy-2016. It extends financial incentives to new industrial units set up in Bihar by entrepreneurs from the Scheduled Caste (SC) and Scheduled Tribe (ST) communities. Reimbursement is offered against several state taxes, which reduces the cost burden that new businesses would otherwise carry.
By offsetting tax liabilities, the scheme seeks to encourage industrial growth and build a stronger entrepreneurial base among SC/ST individuals in the state. The resulting support is intended to improve the ability of new enterprises to compete and to sustain themselves over time.
The scheme forms part of Bihar's wider effort to link industrialisation with social equity and economic empowerment. It also signals the state's interest in drawing investment from a broader set of entrepreneurs.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Bihar
- Industrial units that are new and set up in Bihar - The unit must be promoted by entrepreneurs belonging to the SC/ST categories
How to apply
Claims under the VAT/CST/Entry Tax Reimbursement scheme are made within the framework of the Bihar Industrial Investment Promotion Policy-2016. The steps are as follows:
1. New industrial units set up by SC/ST entrepreneurs must register the enterprise with the relevant state authority. 2. A complete application must then be filed with the designated Department of Industries, Government of Bihar. 3. The application is ordinarily accompanied by supporting documents: proof of the unit's establishment, verification of the entrepreneur's SC/ST status, detailed records of VAT/CST/Entry Tax payments made to the State Government, and documentation of the approved project cost. 4. The application is first reviewed for conformity with the eligibility criteria and for completeness of documentation. 5. Applications that clear this stage move to later stages, which may cover physical verification of the industrial unit, scrutiny of financial records, and assessment of the claims by a dedicated committee. 6. Once validation is complete, the reimbursement amount is processed and disbursed.
Entrepreneurs should consult the official Bihar Industrial Investment Promotion Policy-2016 document on the state government's website for the exact application forms, detailed procedural guidelines and specific submission timelines, so as to remain compliant and avoid delays.
Frequently asked questions
Who is eligible for this reimbursement scheme?
The scheme is open only to newly established industrial units in Bihar that are set up by entrepreneurs from the Scheduled Caste (SC) and Scheduled Tribe (ST) communities.
What kind of taxes are covered under this reimbursement?
The scheme reimburses 92% of admitted VAT, CST and Entry Tax paid into the State Government's account, but taxes arising from trading activity are not covered.
Is there a maximum limit on the reimbursement amount?
Yes, a maximum limit applies: reimbursement is capped at 80.5% of the approved project cost for non-priority sectors, while priority sectors have a higher cap of 115% of the approved project cost.
What is considered a "new unit"?
Under the Bihar Industrial Investment Promotion Policy-2016, a new unit generally means an industrial enterprise that has been set up recently and has begun commercial operations; the detailed policy document may carry specific definitions.
How does one apply for this reimbursement?
Applications are submitted under the Bihar Industrial Investment Promotion Policy-2016, with entrepreneurs required to file the prescribed documents and forms with the Department of Industries, Government of Bihar, in accordance with the procedures laid down in that policy.
Is the reimbursement provided as a lump sum or in installments?
The policy document does not state a disbursement schedule. In practice, tax reimbursements are usually released as a lump sum once the claim is approved, or in instalments where the claim is large and covers several tax periods.
Sectors
- Tax Reimbursement
- Industrial Units
- Scst Entrepreneurs
- Bihar
- Investment Promotion
Details last verified on 14 September 2026. Source: the issuer's published information.