Chandigarh, Jan 13 (KNN) The Haryana government has notified the "Investment Subsidy on VAT/ State GST" for a host of industry segments including MSMEs as part of steps to bring down cost of doing business in the state.

Investment subsidy on VAT/SGST has been announced by Haryana Industries and Commerce Department for ultra-mega projects, mega projects, large units, Micro, Small and Medium and sectors (MSME) of textiles, agro and food processing, footwear and defence or aerospace or electronics or auto components or Railways.

In case of Micro, Small and Medium Enterprises, 75 per cent of VAT/SGST would be net paid for first seven years, 35 per cent for next three years in 'C' a 'D' category blocks; 50 per cent for first five years, 25 per cent for next three years in 'B' category blocks from the date of commencement of commercial production with cap of 100 per cent of new fixed capital investment for new enterprises.

In case of Mega, Large and MSMEs of Defence/Aerospace/ Electronics/ Auto Components sector, 75 per cent of VAT/SGST would be net paid for first seven years, 35 per cent for next three years in 'B', 'C' a 'D' category blocks from the date of commencement of commercial production with cap of 100 per cent of new fixed capital investment for new enterprises.

"It was felt that there was a need to provide one of the major fiscal incentives of investment subsidy on VAT/ SGST for reducing cost of doing business to make the industry competitive and sustainable," the Haryana Industries and Commerce Department said in a release.

"For instance the Ultra Mega Projects shall be offered special package of incentives by Haryana Enterprises Promotion Board including mixed land use, allotment of land at a price to be decided by the Government throughout the State. The quantum of investment subsidy on VAT/SGST shall be decided by the Haryana Enterprises Promotion Board".

While talking to KNN, Harish Agarwal, General Secretary, Kundli Industries Association (KIA) suggested that government should provide some more policies favoring the small industries.

“GST should be single window. Laws should be strict but simple, market should be free so the small industries be able to compete with big industries,” said Agarwal.

He also said that government wants the small industries to follow the same suit that companies like Maruti is following, which according to him is not possible for every industry.  (KNN/RAS)