§1Who it is for

  • MSME, large and anchor enterprises in HP

Useful if

Manufacturers selling a large share inside Himachal.

Do not spend time on it if

Units selling mostly outside HP.

§2Eligibility

  1. New industrial enterprises (except Negative List), new enterprises in Specified Category of Service Activities, and existing enterprises undertaking substantial expansion.
  2. At least 80% Bonafide Himachalis employed at all levels (regular, contractual, daily, via contractor/outsourcing) at start and throughout production; for expansions, 80% of the additional employment.
  3. Incentives admissible from commencement of commercial production/operation or from the enabling notification, whichever is later.
  4. Duration (2022 amendment): new enterprises commencing commercial production on or before 31.12.2025, and expansions starting production after expansion on or before 31.12.2025 (OCR-read; see statusNote on extension).
  5. MSME = investment up to Rs 10 crore in P&M (manufacturing) or Rs 5 crore in equipment (specified services), as defined in the policy.
  6. Amended rates (13.12.2023) apply only to enterprises set up after that notification and till the policy is in force.

§3Benefits

  • MSME (non-steel): 60% (Cat A), 90% (Cat B and C) of net SGST on supplies consumed within HP, 7 years, cap 100% of FCI.
  • Large (non-steel): 60% (A), 80% (B and C), 7 years, cap 100% of FCI.
  • Anchor (non-steel): 100% in A, B, C for 10 years, cap 250% of FCI.
  • Steel manufacturers: MSME 50/80/90% for 7 years, Large 50/70/80% for 5 years, Anchor 100% for 7 years; cap 80% of FCI.

§4Norms — pattern of assistance

  1. Only on net SGST paid and deposited per year; ends on reaching the cap or the period, whichever is earlier.
  2. False declaration: recovery with 12% compound interest per annum or penalty.
  3. Claim yearly before 31 August of the next year, or within 3 months of SGST assessment by Excise & Taxation Dept, whichever is later.
  4. Original 2019 rates (MSME 50/80/90%, cap 80% FCI) still apply to units set up before 13.12.2023.

§5Documents

Tick each one as you get it ready.

§6How to apply

  1. 1

    Annual claim to the Department of Industries (GM DIC / Single Window Clearance Agency).

§7Pros and cons

Merits

  • Category B and C MSMEs get 90% of net SGST back for 7 years (13.12.2023 amendment).

Demerits

  • After 2023 the higher rate is only on SGST on goods consumed within HP - exporters out of the state gain less.
  • 80% local-employment rule; incentives recovered if breached.

→Related schemes

Need help with HP SGST reimbursement?

Eligibility check, DPR and application file — ask us on WhatsApp.

WhatsApp usServices

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. HP Industrial Investment Policy 2019 and Incentive Rules 2019 - consolidated with all amendments up to 08.10.2024 (Emerging Himachal; scanned, read by OCR)
  2. TeamLease RegTech - HP Dept of Industries notification (12 Aug 2026) extending HP Industrial Investment Policy 2019 by two months (secondary)

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.