Chhattisgarh Mandi Tax Exemption Scheme 2024
Department of Industries, Government of Chhattisgarh · Central government
New MSMEs in agriculture, food processing, and biofuel/ethanol sectors get 100% mandi tax exemption for 5 years, up to ₹5 crore yearly.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹5,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 5 years
About this scheme
The Chhattisgarh Mandi Tax Exemption Scheme forms part of the Chhattisgarh Industrial Development Policy 2024-30. It provides financial relief to new Micro, Small, and Medium Enterprises (MSMEs) in the agricultural and food processing sector, as well as the biofuel/ethanol sector. The scheme removes the mandi tax on agricultural products for these businesses, lowering their input costs and improving profitability.
Through this exemption, the Government of Chhattisgarh aims to reduce operational expenses for enterprises in these strategic areas, encouraging fresh investment and strengthening their competitive position. The measure supports the development of a more active agro-based industrial ecosystem and aligns with the state’s broader objectives of sustainable industrial growth and economic diversification. By addressing a significant financial overhead, the policy seeks to attract new businesses and support the expansion of existing operations in regions with strong agricultural potential and emerging biofuel opportunities.
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
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Chhattisgarh
- Must be a new Micro, Small, or Medium Enterprise (MSME). - Operations must be in the agricultural & food processing or biofuel/ethanol sectors. - Enterprises classified under 'ineligible industries' as per the policy are excluded. - Must make first purchase of raw materials from State mandis, direct producing farmers, or units within Chhattisgarh.
How to apply
New MSME enterprises seeking the Mandi Tax Exemption must follow the application procedure set out in the Chhattisgarh Industrial Development Policy 2024-30. In general, applicants are required to submit a comprehensive application to the district industry centre concerned or to the Department of Industries. The documentation typically required comprises:
- Proof of MSME registration (Udyam Registration). - A detailed project report describing the enterprise's operations and investment. - Evidence of fixed capital investment. - Certificates of incorporation and other statutory registrations. - Records of raw material purchases. - A formal application form indicating the exemption sought under the policy.
The authorities will examine the application to confirm that the eligibility conditions are met, including the 'new enterprise' status, sector classification, and details of fixed capital investment. Upon approval, the exemption may be claimed annually against qualifying purchases, within the annual and total limits prescribed by the policy. For specific application forms and the most recent procedural changes, it is recommended to refer to the full policy document and the relevant departmental guidelines.
Frequently asked questions
What is the Chhattisgarh Mandi Tax Exemption Scheme?
New MSME enterprises in specified sectors under the Chhattisgarh Industrial Development Policy 2024-30 receive a 100% exemption from mandi tax on agricultural products for five years.
Which sectors are eligible for this exemption?
New MSME enterprises operating in the agricultural and food processing sectors, as well as those in the biofuel/ethanol sector, are eligible.
What is the maximum benefit an enterprise can receive?
Enterprises may claim an annual exemption of up to ₹5.00 Crore, with the cumulative exemption across five years capped at 75% of the Fixed Capital Investment.
How long is the exemption valid?
The exemption remains in effect for five years, starting from the date on which raw materials are first purchased.
What does 'Fixed Capital Investment' mean in this context?
Fixed Capital Investment is the total amount an enterprise spends on land, buildings, plant, machinery, and other fixed assets required for its operations. This figure determines the upper limit for the mandi tax exemption.
How can I apply for this exemption?
Applications for subsidies under the Chhattisgarh Industrial Development Policy 2024-30 are generally submitted to the state's Department of Industries or district industry centres, in line with the policy's specified procedures. Supporting documents typically comprise MSME registration, project reports, and evidence of investment.
Is this exemption available to existing MSMEs?
The policy applies only to new MSME enterprises, as explicitly stated.
Sectors
- Agri Food Rural
- Climate Energy Ev
- Mandi Tax
- Tax Exemption
- Agriculture
- Food Processing
- Biofuel
- Ethanol
- Msme
- Chhattisgarh
- State Government
Details last verified on 8 September 2026. Source: the issuer's published information.