Rajasthan PNG VAT Reimbursement for Manufacturing Enterprises

The Rajasthan Investment Promotion Scheme 2024 includes a VAT reimbursement provision for PNG consumption. Under this, manufacturing enterprises receive a 5%-point reimbursement of the Value Added Tax they pay on Piped Natural Gas, applicable for seven years.

Eligibility is limited to manufacturing enterprises investing in the sectors listed in Annexure 9.6 of the policy document.

Through this reimbursement, the Rajasthan State Government aims to lower energy-related operating costs for manufacturers, support industrial growth within the state, and draw fresh investment into the sector.

The measure also serves an environmental purpose: by narrowing the cost gap, it makes PNG a more viable energy choice for industry. For qualifying businesses, the reimbursement acts as a direct reduction in a significant input cost, which in turn supports profitability and longer-term viability.

Manufacturing units seeking VAT reimbursement on PNG must consult the full application guidelines issued under the Rajasthan Investment Promotion Scheme 2024. The process, in general, comprises the following:

- Filing an application with the concerned state authority, such as the Department of Industries or the Finance Department of Rajasthan. - Furnishing documents that establish the unit's status as a manufacturing enterprise and demonstrate investment in eligible sectors, in accordance with Annexure 9.6. - Submitting VAT payment proofs for PNG consumption at regular intervals in order to claim reimbursement across the 7-year period.

Under the Rajasthan Investment Promotion Scheme 2024, this reimbursement is not awarded through competition. An enterprise qualifies by satisfying the eligibility conditions laid down in the scheme — specifically, being a manufacturing enterprise that invests in the sectors listed in Annexure 9.6. Once those policy requirements are met, the reimbursement follows as an entitlement.