Punjab SGST Reimbursement: Anchor Units

Clause 12.9 of the Industrial and Business Development Policy 2022 of Punjab sets aside its biggest investment subsidy for Anchor Units — the projects the State relies on to seed an industrial ecosystem. An anchor unit is entitled to reimbursement of 100% of net SGST for 15 years starting from the date of commercial production, capped at 200% of Fixed Capital Investment. This takes the place of, and is not in addition to, the investment subsidy laid down for other categories of unit. At 200% of FCI spread over fifteen years, it is the most valuable provision in the policy by a considerable margin, which is why anchor status is settled during project approval rather than sought afterwards.

- Apply to the Government of Punjab for Anchor Unit status for the project at the approval stage, in accordance with the Industrial and Business Development Policy 2022. - Begin commercial production and note the date on which it commences, since the 15-year period is counted from that date. - Register the fixed capital investment with the department, as this determines the 200% ceiling. - Submit periodic reimbursement claims through the Invest Punjab Business First portal, accompanied by GST returns that show the net SGST paid. - Claims may be made until either 15 years have passed or the ceiling has been fully used.

Anchor Unit status is conferred by the State when a project is approved, with the decision resting on the scale of investment and the project's effect on the wider ecosystem. After that status is in place, reimbursement ceases to be a contest: for each period the department checks the FCI and the net SGST, then disburses the sum, subject to the 200% ceiling.