Net SGST Reimbursement

Under the Haryana Startup Policy 2022, eligible startups operating in the state can claim reimbursement of the Net State Goods and Services Tax (SGST) they have paid. The Department of Industries & Commerce, Government of Haryana, and Startup Haryana jointly administer the benefit. Startup Haryana serves as the state's nodal agency, running incentives and support measures for local innovators and entrepreneurs.

A qualifying startup receives 50% of the Net SGST it has paid. The benefit runs for seven years from the date commercial operations formally begin. Claims follow a reimbursement route: the startup pays the tax first and then claims back the eligible portion. The arrangement is meant to strengthen working capital and improve cash flow in the early years.

The reimbursement lowers the tax load a startup carries and, with it, overall operational costs. Capital that would otherwise go towards indirect tax stays with the business and can be put back into core activities, product development, market expansion or hiring talent. The scheme delivers direct financial relief through tax benefits alone.

- **Online Application**: Applications are to be submitted online via the dedicated Invest Haryana portal, which serves as the central point for state startup incentives and takes applicants through the necessary forms and submission stages. - **Submission of GST Returns**: Goods and Services Tax (GST) returns, specifically GSTR-3B and GSTR-9, must be submitted by applicants. These documents serve as official evidence of tax payments and financial activity. - **CA-Certified Net SGST Computation**: A computation of the Net SGST amount, certified by a Chartered Accountant (CA), is required. Such independent certification lends credibility and accuracy to the reimbursement being claimed. - **DPIIT Recognition Certificate**: A copy of the valid DPIIT recognition certificate must be attached, confirming the applicant's status as an eligible startup under both national and state policies. - **Bank Details for Reimbursement**: Accurate bank account details must be provided so that the reimbursement amount can be transferred directly. The details should pertain to a business account linked to the startup. - **Verification and Approval**: Once submitted, the application and its supporting documents are subjected to detailed verification by the Department of Industries & Commerce, which includes cross-referencing GST data and DPIIT records. - **Disbursement**: Following successful verification and approval, the eligible reimbursement amount is disbursed directly into the bank account furnished by the startup. The process is intended to deliver financial relief in a timely manner.

Applications go through the Invest Haryana portal, where a DPIIT certificate, GSTIN and net GST payment records must be furnished. The Department of Industries & Commerce checks each submission before any reimbursement is taken forward.

Under the Haryana Startup Policy 2022, DPIIT-recognised startups in Haryana that clear this verification are reimbursed net SGST once a year.