Punjab Mega Project SGST Refund

Punjab's Industrial and Business Development Policy 2022 extends 100% of net SGST to new Mega Projects for a period of 17 years, subject to a ceiling of 200% of Fixed Capital Investment.

Because the window runs so long, the FCI ceiling generally becomes the operative limit rather than the time period. A plant with high turnover may absorb 200% of its capital investment long before the seventeenth year is reached.

When sizing a project, it is therefore advisable to model the reimbursement schedule against projected taxable sales.

1. Secure approval for the project as a Mega Project in accordance with the Industrial and Business Development Policy 2022. 2. Complete registration on the Invest Punjab Business First portal, then file the application for SGST reimbursement. 3. Provide the mega project approval, FCI particulars, the date of commercial production and GST returns. 4. Within the 17-year window, lodge claims for reimbursement of net SGST at periodic intervals.