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Businesses can save up to 50% of VAT and CST taxes in Rajasthan

Rajasthan Investment Promotion Scheme (RIPS)

Rajasthan government is providing a number of incentives and assistance to various industries through a variety of schemes. RIPS was launched in 2014 to attract investments in bigger industries along with a tax saving incentives provided to small industries too. The businesses belonging to small or big industries – there is something for everyone. Let’s check out which industries are getting how much of tax reduction under investment promotion scheme.

  1. Dairy Sector

Enterprises who are making a minimum of 5 Cr of investment in dairy industry will get following benefits:

  • Investment subsidy of 50% of VAT and CST which has become due and have been paid continuously for 10 years.
  • 10% Employment Generation Subsidy (EGS) on VAT and CST which has become due and have been paid for continuously 10 years.
  • 50% of Entry Tax will be relived on Capital Goods for setting up a new plant or expansion of an existing unit or revival of a sick unit in the local area provided that it should apply before commencement of industrial production.
  1. Electronic System Design and Manufacturing

Enterprises making a minimum investment of 25 lakh in ESDM will get following benefits:

  • 75% for first four years, 60% for next three years and 50% for last three years of Investment Subsidy will be provided on VAT and CST. The assistance will be provided to 10 years.
  • 10% of VAT and CST under EGS for 10 years.
  • 50% of Entry Tax will be relived on Capital Goods for setting up a new plant or expansion of an existing unit or revival of a sick unit in the local area provided that it should apply before commencement of industrial production.
  1. Industrial Gases

Enterprises making a minimum investment of 50 Cr will be granted following benefits:

  • Investment subsidy of 60% of VAT and CST for 7 years.
  • 10% of VAT and CST under EGS for 7 years.
  1. Pharmaceutical sector

Enterprises making a minimum investments of 50Cr and providing employment to minimum 200 persons will be granted following benefits:

  • Investment subsidy of 50% VAT and CST for 7 years.
  • 10% of VAT and CST under EGS for 7 years.
  • 50% of Entry Tax will be relived on Capital Goods for setting up a new plant or expansion of an existing unit or revival of a sick unit in the local area provided that it should apply before commencement of industrial production.
  1. Plastic to Oil Manufacturing Sector

Enterprises making a minimum investment of 1 Cr will be granted following benefits:

  • Investment subsidy of 60% of VAT and CST for 10 years.
  • 10% of VAT and CST under EGS for 10 years.
  • 50% of Entry Tax will be relived on Capital Goods for setting up a new plant or expansion of an existing unit or revival of a sick unit in the local area provided that it should apply before commencement of industrial production.
  1. Textile Sector

Enterprises making a minimum investment of 25 lacs will be granted following benefits for the period as mentioned in the clause 10.7 :

  • 5% interest subsidy
  • 1% more subsidy will be provided to those enterprises who are making an investment of more than 25 lacs.
  • Technical Textile Sector will get 7% interest subsidy.
  • 50% reimbursement of VAT on purchase of yarn, fibre, recycled fibre yarn, cotton and pet bottles for use in manufacture of goods within the State, for sale by him or her.

For more information, CLICK HERE.

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