VAT Assistance in operating Industries on cleaner fuels

Objective:

The Government recognizes that industries in Haryana are being pushed to shift to cleaner fuels including
natural gas, due to concerns arising from the severity of air pollution which would lead to an increase in
cost of production for industries and will affect their competitiveness. To help them remain competitive,
the Hon’ble Chief Minister of Haryana has announced to provide 50% reimbursement on VAT collected
on natural gas (piped or compressed) from industries in the MSME, Large, Mega, and Ultra-Mega sector
for two years starting from 01.04.2022.

Eligibility:

MSME, Large, Mega and Ultra-Mega Units operating in the districts of Haryana that have converted to
cleaner fuels like CNG/PNG/LPG are eligible for this scheme. However, the units under the restrictive list
of the industries notified under HEEP-2020 shall not be applicable for this assistance.
The eligible units shall also comply with the following conditions –
i. The unit should have an IEM/Udyam Registration Certificate (URC) and Haryana Udhyam
Memorandum (HUM).
ii. The unit should have obtained NOC/CLU from the Competent Authority if applicable.
iii. The unit should be in regular commercial production at the time of disbursement and the subsidy shall
not be released to a closed unit.
iv. The units shall follow the guidelines released by the Commission for Air Quality Management in
National Capital Region and Adjoining Areas from time to time.

Penal Action:

In case, it is found at any stage that the applicant has claimed the assistance based on wrong facts, the
applicant shall refund assistance with the compound rate of interest @ 12% per annum and face legal
action. The applicant shall also be debarred from the grant of any incentives/assistance from the State
Government.

Source: No. 50-2022] CHANDIGARH, TUESDAY, DECEMBER 13, 2022 (AGRAHAYANA 22, 1944 SAKA)

Ishan Kakkar, Associate- Indirect Tax, SW India