Net SGST Reimbursement

**SGST Reimbursement for Startups in Haryana**

This scheme provides a reimbursement of 50% of the Net State Goods and Services Tax (SGST) paid by eligible startups in Haryana. It operates as a fiscal measure under the Haryana Startup Policy 2022, administered jointly by the Department of Industries & Commerce, Government of Haryana, and Startup Haryana. The latter serves as the state's nodal agency for nurturing new ventures and delivering support mechanisms to local entrepreneurs.

The benefit is available for seven years from the date a startup formally begins commercial operations. The mechanism follows a reimbursement model: startups pay the applicable tax first and then claim the eligible portion. This structure is intended to support working capital and improve early-stage cash flow for developing businesses.

By reducing the indirect tax burden, the scheme lowers operational costs and allows startups to retain more capital. These funds can be redirected towards product development, market expansion, or hiring. The scheme's scope is limited to direct financial relief through tax benefits.

The application process is structured as follows:

- **Online Application**: The initial step involves submitting an application through the dedicated Invest Haryana portal. This platform serves as the central point for state startup incentives and directs applicants through the necessary forms and submission procedures. - **Submission of GST Returns**: Applicants are required to file their Goods and Services Tax (GST) returns, namely GSTR-3B and GSTR-9. These documents act as official evidence of tax payments and financial transactions. - **CA-Certified Net SGST Computation**: A computation of the Net SGST amount, certified by a Chartered Accountant (CA), must be submitted. This independent certification lends credibility and precision to the reimbursement claim. - **DPIIT Recognition Certificate**: A copy of the valid DPIIT recognition certificate is to be included, confirming the applicant's eligibility as a startup under both national and state policies. - **Bank Details for Reimbursement**: Accurate bank account information must be provided to enable the direct transfer of the reimbursement. The details should pertain to a business account associated with the startup. - **Verification and Approval**: Following submission, the application and its supporting documents are subjected to a comprehensive review by the Department of Industries & Commerce. This includes a cross-check of GST data and DPIIT records. - **Disbursement**: Once verification and approval are successfully completed, the approved reimbursement amount is transferred directly to the startup's designated bank account. The procedure is designed to ensure prompt financial support.

Applications are filed via the Invest Haryana portal, accompanied by a DPIIT certificate, GSTIN, and records of net GST payments. The Department of Industries & Commerce checks each submission before reimbursement is processed. Under the Haryana Startup Policy 2022, DPIIT-recognised startups in Haryana that meet the eligibility criteria receive reimbursement of net SGST once a year.