Main incentives
| Incentive | Benefit |
|---|---|
| Investment subsidy (SGST) | 75% of state tax due and deposited, for 7 years (longer for sunrise sectors) |
| Interest subvention for MSMEs | 6% on loans up to ₹5 crore, 4% on ₹5–10 crore, 3% on ₹10–50 crore, for 7 years |
| Additional interest subsidy (MSME Policy 2024) | Extra 2% / 1% / 0.5% for ODOP units, SC/ST and women owners, entrepreneurs aged 18–45 and Area Category 3 units |
| CGTMSE fee | 100% reimbursed for 7 years on collateral-free loans |
| Stamp duty and land conversion | 100% — 75% exempt upfront, 25% reimbursed after production starts |
| Electricity duty | 100% exemption for 7 years |
| Mandi fee (agro units) | 100% reimbursement for 7 years on turnover above a benchmark |
Total incentives for an MSME are capped at ₹5 crore a year. Large units choose one asset-creation incentive (investment subsidy, capital subsidy or turnover-linked incentive), and that choice cannot be changed.
Sector and MSME support
- Agro and food processing: capital subsidy of 50% up to ₹1.5 crore for eligible FPOs
- Plastic alternatives: 50% of capital investment up to ₹40 lakh
- Export freight: 25% of freight up to ₹25 lakh a year for first-time MSME exporters
- Employee training: 50% of cost for 6 months
- Green growth: 50% of environmental project costs and support for clean-tech machinery
Conditions that trip up claims
- Late application after commercial production — benefits may start only from the certificate date
- The additional MSME interest subsidy must be sought within 6 months of RIPS interest approval
- Ineligible investment: land above 30% of fixed capital, used buildings, second-hand machinery
- Wrong choice of asset-creation incentive — it is irreversible, and SGST subsidy follows SGST actually paid in cash
How we file it
- Enterprise profileUdyam registration and RajNivesh enterprise profile.
- Stamp duty certificatePre-production application so 75% stamp duty is exempt at land registration.
- Entitlement CertificateAfter the first sale invoice, apply with investment, employment and loan details for committee approval.
- Quarterly claimsSGST and interest claims every quarter with CA certificates; one-time claim for the 25% stamp duty refund.
Documents required
- Udyam / incorporation documents, PAN and GSTIN
- Project report and board resolution
- Land documents and stamp duty challans
- First sale invoice
- CA certificate of fixed capital investment
- Employee list in prescribed format
- RSPCB consent to operate
- Bank loan sanction and interest certificates; SGST cash ledger
Sources: RIPS 2024 notification (8 Oct 2024) · Karnani & Co – RIPS 2024 · A2Z Taxcorp – RIPS 2024 amendments (Oct 2026) · RajNivesh portal
Frequently asked questions
Which scheme applies to a new factory in Rajasthan?
RIPS 2024, notified on 8 October 2024 and valid until March 2029 or until replaced, together with the Rajasthan MSME Policy 2024 for MSMEs.
How much SGST can be reimbursed?
75% of state tax due and deposited, for 7 years under the standard package and longer for sunrise sectors. MSME incentives are capped at ₹5 crore a year in total.
What interest subsidy can an MSME get?
6%, 4% or 3% depending on loan size for 7 years under RIPS 2024, plus 2%, 1% or 0.5% more for ODOP, SC/ST, women, young or Area Category 3 units under the MSME Policy 2024, and 100% CGTMSE fee reimbursement.
Is stamp duty fully exempt?
Yes, in two stages: 75% is exempted when the land is registered using the Entitlement Certificate, and the remaining 25% is reimbursed after commercial operations begin.