Incentive Scheme for MSMEs in Powerloom Sector: Subsidy for State Goods and Services Tax (SGST)
Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal · Central government
The scheme refunds net SGST paid for 8 years to eligible MSMEs in West Bengal's powerloom sector, with zone-based percentages.
Closed. Applications closed on 31 December 2024. The details below describe the most recent cycle.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- 31 December 2024
- Disbursement
- Reimbursed after spend
- Scheme duration
- 97 months
About this scheme
The Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal, administers the Incentive Scheme for MSMEs in Powerloom Sector: Subsidy for State Goods and Services Tax (SGST). The scheme commenced on January 1, 2022, and remains in force until December 31, 2024. Its purpose is to offer fiscal incentives to MSMEs that adopt new-age shuttleless powerlooms, supporting the production of higher-quality fabrics.
Through this sub-scheme, the state provides tax refunds to reduce operational costs and encourage investment in modern powerloom technology. The initiative aims to build a sustainable ecosystem for MSMEs in the textile industry, improve resource utilisation, create employment, and widen the sector's operational base. It is intended to help West Bengal emerge as a leading powerloom hub in the country.
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
- West Bengal
- Applicable to all micro, small, and medium enterprises (MSMEs) in the powerloom sector. - Commercial production must have commenced between January 1, 2022, and December 31, 2024. - A Four-party agreement must have been executed with the Directorate of Textiles, a Financial institution, and Tantuja. - Units may be from the private sector, cooperative sector, joint sector undertakings, companies/undertakings owned and managed by the State Government, or Industrial SHGs. - The project must be covered by a detailed feasibility report. - The project must have been approved and sanctioned by a Central Financial Institution, Commercial Bank, or State Financial Institution.
How to apply
The application process for the SGST Subsidy is handled offline. An eligible enterprise must apply using the prescribed **FORM-E**, which can be downloaded, and submit it to the Commissioner of Commercial Taxes, West Bengal. Applications are to be filed at the end of each financial year, seeking certification of the total SGST paid (excluding input credit) on goods manufactured and sold during that year. For production that commenced between January 1, 2022, and December 31, 2024, the first application must be submitted within 12 months of the date of commercial production. Physical applications should be addressed to The Commissioner, Commercial Taxes, Directorate of Commercial Taxes, 14, Beliaghata Road, Kolkata-700015. Before submission, applicants must verify that all required documents, such as project feasibility reports and sanction letters from financial institutions, are complete and in order.
Frequently asked questions
What is the primary objective of the "Incentive Scheme for MSMEs in Powerloom Sector"?
The scheme provides fiscal incentives to MSMEs in the textile sector for installing new-age shuttleless powerlooms, with the aim of improving fabric quality, creating a sustainable ecosystem, maximising resource use, generating employment, and expanding operations to establish West Bengal as a leader in the powerloom sector.
Who is eligible for the SGST Subsidy under this scheme?
The scheme applies to all micro, small, and medium enterprises (MSMEs) in the powerloom sector that began commercial production between January 1, 2022, and December 31, 2024.
What are the key benefits provided by the "Subsidy for State Goods and Services Tax (SGST)" sub-scheme?
Eligible MSMEs will get a refund of Net SGST paid to the Government of West Bengal for 8 years from the date of commercial production commencement. The refund rate is 30% for Zones B and C, and 50% for Zones D and E.
Is there any limitation on the total amount of SGST refund an enterprise can receive?
Yes, the cumulative SGST refund is capped at 75% of the Fixed Capital Investment made by the enterprise.
What are the requirements concerning project approval and agreements?
Enterprises must have executed a four-party agreement with the Directorate of Textiles, a financial institution, and Tantuja. The project also requires a detailed feasibility report approved by a Central Financial Institution, Commercial Bank, or State Financial Institution.
How is the application submitted, and what is the timeframe for the first application?
Applications must be submitted offline in the prescribed FORM-E to the Commissioner of Commercial Taxes, West Bengal. The initial application is due within 12 months from the date commercial production begins.
What types of entities are eligible to be units under this scheme?
The scheme covers units in the private, cooperative, and joint sectors, as well as companies or undertakings owned and managed by the State Government and Industrial Self-Help Groups (SHGs).
Sectors
- Manufacturing Industrial
- Msme
- Powerloom
- Textile
- West Bengal
- Gst Refund
- Subsidy
Details last verified on 3 August 2026. Source: the issuer's published information.