Punjab Sick Unit SGST Reimbursement
Department of Industries & Commerce, Government of Punjab · Central government
Sick large units with a sanctioned rehabilitation package receive 75% (border districts) or 50% (other districts) net VAT/SGST reimbursement for 5 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
About this scheme
Punjab's Industrial and Business Development Policy 2022 provides relief to sick large units that are being revived. Under it, such units can claim reimbursement of net VAT/net SGST for a period of five years, counted from the date the rehabilitation package is sanctioned. The rate of reimbursement is 75% for units located in border districts and 50% for units in the remaining districts.
The five-year window is tied to the sanction of the rehabilitation package, not to any production milestone. Securing the sanction is therefore the decisive step: once the package is approved, the reimbursement period begins to run, irrespective of whether turnover has recovered.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not required
- DPIIT startup recognition
- Not required
- GST registration
- Not specified
- Where the business may be based
- Jammu and Kashmir
- The unit must be a sick large unit located in Punjab. - A rehabilitation package must have been sanctioned for the unit. - Units in border districts receive 75% reimbursement. - Units in other districts receive 50% reimbursement. - The benefit is available for 5 years from the date of sanction of the rehabilitation package.
How to apply
1. Have the unit declared sick and secure sanction of a rehabilitation package. 2. Complete registration on the Invest Punjab Business First portal, then file an application under the Industrial and Business Development Policy 2022. 3. Provide the rehabilitation package sanction order, district particulars and GST returns. 4. Seek reimbursement of net VAT/SGST for every eligible period across a span of 5 years.
Frequently asked questions
Who is eligible?
Which large units in Punjab qualify? Those that are sick and hold a sanctioned rehabilitation package.
How much is reimbursed?
In border districts, the reimbursement covers 75% of net VAT or net SGST, while in other districts it is 50%.
How long does it run?
The rehabilitation package's benefits remain available for five years starting from the date the package is sanctioned.
When does the period start?
The rehabilitation package's sanction date marks the start of the period, not the date on which production resumes.
Sectors
- Punjab
- Sickunit
- Rehabilitation
- Sgstreimbursement
- Borderdistricts
- Industrialpolicy2022
Details last verified on 16 September 2026. Source: the issuer's published information.