SGST Reimbursement under Bihar IT Policy, 2024

100%
Net SGST Reimbursement, up to 5 Years
100% FCI
Maximum Cumulative Reimbursement Cap
20% FCI
Maximum Annual Reimbursement Cap
12% p.a.
Interest on Recovery for Contravention
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Objective

What this resolution does

The Bihar IT Policy 2024 was notified vide Departmental Resolution No. 78 dated 09.01.2024 to attract investment in Information Technology, IT-based Services and Electronic System Design and Manufacturing, providing capital investment or interest subsidy, lease rental subsidy, electricity bill subsidy and employment generation subsidy. The general SGST reimbursement provision sits in Industries Department Resolution No. 108 dated 20.01.2020. This resolution formally incorporates that provision as Clause 7.6 of the IT Policy 2024.

Core provision

Eligible units receive 100% reimbursement against SGST deposited in the State Government's account from the Electronic Cash Ledger, after adjustment of IGST and SGST credit available in the Electronic Credit Ledger. Reimbursement runs for up to 5 years from the date of commercial production, and the cumulative value over those 5 years cannot exceed 100% of eligible Fixed Capital Investment under any circumstances. The Department of IT reimburses based on a report from the Commercial Taxes Department.

Caps & Conditions

How much can be claimed, and who is excluded

ParameterProvision
Maximum cumulative Net SGST reimbursement100% of Fixed Capital Investment
Maximum annual Net SGST reimbursement20% of Fixed Capital Investment
Production thresholdUnits producing less than 50% of installed capacity are not eligible
Trading carve-outApplies only to eligible IT, ITeS and ESDM units; where such a unit also trades, no reimbursement is given on sale or supply generated through the trading business
Credit utilisation is the operational trap. A unit must first use the full available IGST and SGST credit in the Electronic Credit Ledger toward SGST liability, paying only the balance via the Cash Ledger. Unutilised credit is deducted from the next reimbursement instalment — and if there is no next instalment, the promoters must deposit an equivalent amount in the Government Treasury, failing which it is recoverable as land-revenue dues. The same mechanism applies to inter-state supply: where a registered dealer makes an inter-state sale or inventory transfer after supply by the unit, an amount equal to the SGST credit utilised toward the corresponding IGST liability is recoverable from the eligible unit.
  • •Claims are filed annually in the prescribed format.
  • •Tax paid via the Electronic Cash Ledger is certified by the Commercial Taxes Department based on filed statements and payment receipts.
  • •Calculation of the reimbursable, adjustable or depositable amount is done by the Commercial Taxes Department based on statements filed by the unit and related dealers, then communicated to the Department of Information Technology, which carries out recovery where required.
  • •The Commercial Taxes Department may issue further guidelines on certifying credit utilised toward SGST liability and on computing and processing claims.
Penalty

Contravention and interpretation

If an eligible unit shows its inter-state supplies as intra-state supplies — through an intermediary, marketing network or any middleman directly or indirectly controlled by it — to obtain higher incentives, the benefit is cancelled with effect from the date of contravention, and the unit must return the entire incentive amount availed forthwith, with interest at 12% per annum.
Where the translated Hindi version and the English version differ in meaning or interpretation, the English version binds and prevails in all respects. Source: Bihar Gazette (Extraordinary), Registration No. PT0-40, Patna, 27 January 2025 — Resolution No. F-193/9/2022-SECTION_6-ITDEPT-ITDEPT—90 dated 16.01.2025, Information Technology Department, Government of Bihar, approved by Cabinet as Item No. 15 dated 10.01.2025.