SubsidyDept. of Industries & Commerce (DIC) / Commercial Taxes Dept., Govt. of Andhra Pradesh

AP MSME Policy 4.0 — SGST Reimbursement

100% reimbursement of State GST (SGST) paid on goods manufactured and sold by MSME units in Andhra Pradesh for 5 years under AP MSME Policy 4.0. Claimed quarterly against GST returns. Units in backward districts receive SGST reimbursement for 7 years. A significant benefit for revenue-generating manufacturing MSMEs — SGST is 50% of total GST collected, so this effectively reduces the total GST burden by 50% over the claim period.

Maximum amount

₹1.0Cr

Typical payout

₹20.0L

Processing time

8–16 weeks

Application window

Quarterly claims for 5 years (7 years for backward districts) from commencement.

Check if your startup qualifies for AP MSME Policy 4.0 — SGST Reimbursement

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Eligibility criteria

Company type: Private Limited, LLP, Proprietorship, Partnership Firm
Stage: Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+)
States: Andhra Pradesh
Sectors: manufacturing, food_processing, textile, chemicals, engineering, pharma, other
Prerequisites: Udyam (MSME) registration required

Documents required

Udyam Registration Certificate

Active Udyam Registration confirming MSME status for AP MSME Policy 4.0 eligibility.

Tip: MSME category must be consistent with the scale of SGST paid — a very high SGST claim relative to the declared MSME investment may prompt DIC scrutiny.

GST Registration Certificate (GSTIN — AP State Code 37)

GSTIN registration certificate with state code 37 (Andhra Pradesh). SGST reimbursement is on AP SGST only — goods manufactured and sold from the AP unit under this GSTIN.

Tip: If you have multiple GSTINs (across states), ensure you file AP-specific GSTR-1 and GSTR-3B under the AP GSTIN (code 37). Only AP-state SGST is reimbursable — CGST and other states' SGST are not covered.

Entity Constitution Documents

Incorporation certificate or entity formation document confirming the entity is the GSTIN holder and MSME operator.

Tip: Entity name must match the GSTIN registration exactly.

GST Returns — GSTR-1 and GSTR-3B for the Claim Period

Filed GSTR-1 (outward supplies) and GSTR-3B (summary return showing SGST paid) for each quarter of the claim period. No canonical key exists for GST return filings as a document type — gst_registration is the enrolment certificate, not the periodic return filings. Submit downloaded GST return acknowledgements from the GST portal as attachments.

Tip: Download GSTR-1 and GSTR-3B acknowledgements from gstin.gov.in after each filing. Maintain quarterly filing discipline — any gap in GST filing disqualifies that quarter's SGST reimbursement claim.

CA Certificate — SGST Paid and Reimbursement Claim

CA certificate computing total SGST paid in the claim quarter/year under the AP GSTIN, eligible reimbursement amount (100% of SGST paid), and cross-reference to GSTR-3B filings, certified with UDIN.

Tip: CA must reconcile the SGST amount in the certificate against the GSTR-3B payment challans — the Commercial Taxes Dept. cross-verifies this. UDIN mandatory.

Bank Account Details (Cancelled Cheque)

Cancelled cheque for entity current account for SGST reimbursement disbursement.

Tip: Account should be in entity name matching GSTIN registration.

Audited Financial Statements

Audited accounts for the most recent financial year confirming manufacturing operations and GST-liable sales.

Tip: The scale of sales in audited accounts should be broadly consistent with the SGST claimed — large inconsistencies flag for audit review.

How to apply for AP MSME SGST

Ensure GST registration under AP GSTIN (state code 37) is active and GSTR-1/GSTR-3B are filed monthly/quarterly without gaps.

After each quarter, file the SGST reimbursement claim with GSTR-1, GSTR-3B, CA certificate, and Udyam certificate on the portal.

Commercial Taxes Dept. cross-verifies the claim against GST filing records — 8–12 weeks for processing.

SGST reimbursement disbursed to entity account quarterly. Continue for 5 years (7 for backward districts) from commencement date.

Frequently asked questions

Who is eligible for AP MSME SGST?

AP MSME SGST is available to Private Limited, LLP, Proprietorship, Partnership Firm companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+) stage, across Andhra Pradesh. Udyam (MSME) registration is required.

How much funding does AP MSME SGST provide?

AP MSME SGST provides up to ₹1.0Cr. Most applicants receive around ₹20.0L.

How long does AP MSME SGST approval take?

The typical processing time from submission to disbursement is 8–16 weeks.

Is AP MSME SGST currently accepting applications?

Yes, AP MSME SGST is currently active and accepting applications. Application window: Quarterly claims for 5 years (7 years for backward districts) from commencement..

Do I need Udyam registration for AP MSME SGST?

Yes, Udyam (MSME) registration is required. Register at udyamregistration.gov.in before applying.

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Information is based on publicly available scheme guidelines. Always verify with official sources before applying.