Incentive Schemes Overview
State Incentives: Illustrative areas for consideration
Parameters to consider while negotiating or applying for incentives
GST linked subsidy or fixed capital subsidy.
In case of GST linked incentives, ability to
obtain Gross GST vis-à-vis Net GST, based
on expected consumption in the State
Investment, production and employment
commitments provided by the company and
consequences of not meeting those
commitments - recovery of past incentives by
Upfront agreement on exclusions and
inclusions for eligible fixed assets
depending on the items of investment
Ability to leverage new investments to amend
or review the existing MoU, incentive period,
investment period etc. Consider alternative
States offering better incentives
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the Government
Implementation process documentation,
certification, separate GST registration for
covered investments etc.
Treatment of intangible assets such
as royalty, technical know how, pre-
operative expenses etc; domestic or
imported used assets
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