Odisha MSME SGST Reimbursement for New and Expanding Units
MSME Department, Government of Odisha · Central government
Under the MSME Development Policy 2022, new and expanding, modernising or diversifying units get 75% of net SGST back for 3 years.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 3 years
About this scheme
The Odisha SGST Reimbursement scheme, offered under the Odisha MSME Development Policy 2022, extends support to new enterprises as well as existing ones that take up expansion, modernisation, or diversification (E/M/D) within the state. The scheme reduces the tax load on businesses by reimbursing a portion of the State Goods and Services Tax (SGST) they pay in cash. Through this incentive, the Odisha government aims to spur industrial growth, encourage investment in advanced machinery, and drive economic development across the region.
Enterprises that qualify may claim 75% of the net SGST they have paid in cash, calculated over three years starting from the date production begins. The reimbursement cannot exceed 100% of the amount invested in Plant & Machinery, which offers considerable backing for projects that are capital-intensive. The scheme applies specifically to the net tax paid towards the state component of GST, once input tax credit adjustments against output tax liabilities are taken into account. This design ensures the benefit reaches enterprises that add to the state's industrial base.
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
- Odisha
- New and existing enterprises carrying out Expansion/Modernization/Diversification (E/M/D). - Investment in Plant & Machinery must not exceed INR 50 crores. - Reimbursement covers net SGST paid on the State component of GST, computed after input tax credit is set off against output tax liabilities.
How to apply
Applications for reimbursement under the Odisha SGST scheme are generally routed through the Odisha MSME Department's official channels, forming one component of the wider incentives application process laid down by the Odisha MSME Development Policy 2022.
- **Preparation:** The enterprise must assemble detailed documentation — proof of incorporation, MSME Udyam registration, records of investment in Plant & Machinery, SGST payment receipts, and certificates for the commencement of production for E/M/D activities. - **Application Submission:** The prescribed application form, ordinarily obtainable from the MSME Odisha website or via District Industries Centres (DICs), is to be submitted together with all supporting documents. - **Verification:** The relevant authorities examine the application and accompanying documents to establish eligibility and confirm that the claims made are authentic. - **Approval and Disbursement:** Once verification and approval are complete, the reimbursement amount due to the eligible enterprise is processed and paid out.
Frequently asked questions
What is the Odisha SGST Reimbursement program?
Under the Odisha MSME Development Policy 2022, new and existing enterprises in Odisha that undertake Expansion, Modernization, or Diversification (E/M/D) activities can claim reimbursement of 75% of the net SGST they have paid in cash.
Who is eligible to claim this reimbursement?
Enterprises, whether new or already operating, qualify if their investment in plant and machinery does not exceed INR 50 crores, and the programme is aimed at those engaged in E/M/D activities.
What is the maximum amount of reimbursement I can receive?
You can claim 75% of the net SGST paid in cash, capped at 100% of your Plant & Machinery cost. Where that investment is up to INR 50 crores, the reimbursement may reach that amount across the 3-year period.
For how long can I claim this reimbursement?
Enterprises that qualify may claim the reimbursement for three years starting from the date production begins.
Does this reimbursement apply to the full GST amount?
No. Net SGST reimbursement applies only to the net tax paid on the State component of GST, calculated after input tax credit has been set off against your output tax liabilities.
How do I apply for this program?
Applications are handled by the Odisha MSME Department under the Odisha MSME Development Policy 2022, and require an application form supported by documents on Plant & Machinery investment, SGST payment records and proof of commencement of production. Forms and submission guidelines are available on the official MSME Odisha portal or at the relevant district industry centres.
Sectors
- Odisha
- Msme
- Gst
- Subsidy
- Manufacturing
- Expansion
Details last verified on 18 September 2026. Source: the issuer's published information.