Chhattisgarh Mandi Tax Exemption Scheme

Under the Chhattisgarh Industrial Development Policy 2024-30, the Chhattisgarh Mandi Tax Exemption Scheme extends financial relief to newly established industrial units. It covers agriculture and food processing, dairy product processing, non-timber forest produce processing, the compressed biogas (CBG) sector, and green hydrogen plants.

Units in these sectors receive a 100% exemption from mandi tax on agricultural products, which lowers their operating costs. The exemption is intended to draw fresh investment and to make raw material procurement cheaper for new units, improving their competitive position.

The scheme forms part of the state's wider effort to build an industrial ecosystem across Chhattisgarh and to support enterprises working in areas the policy identifies as developmental priorities.

Under the Chhattisgarh Industrial Development Policy 2024-30, the process for claiming the Mandi Tax Exemption is administered. An applicant setting up a new enterprise generally has to register with the state government department designated to handle industrial incentives. This requires filing a detailed application form together with supporting documents, typically comprising proof of company incorporation, particulars of fixed capital investment, and projections or records of raw material purchases. After the initial application is filed, it is screened for eligibility. Once approval is received, the business submits periodic claims for mandi tax exemption, backed by purchase invoices and other relevant documentation; state authorities verify these before the exemption is granted. For exact step-by-step instructions and the prescribed forms, referring to the official policy document is advised.

For the Mandi Tax Exemption Scheme, the relevant state government department carries out the assessment. Each application is measured against the criteria set out in the Chhattisgarh Industrial Development Policy 2024-30, with attention to whether the applicant qualifies as a 'new enterprise', whether it operates in one of the specified eligible industries, and whether its Fixed Capital Investment (FCI) can be verified.

Documentation is examined in detail, and an on-site inspection may be arranged in certain cases to establish the nature of operations, the practices followed for raw material procurement, and compliance with the policy's guidelines. The purpose of this scrutiny is to confirm that the tax exemption reaches only units that are genuinely eligible.