J&K GST Linked Incentive (GSTLI)

Reimbursement of 100% of gross GST paid for up to 10 years, capped at 300% of the unit's investment in plant & machinery.

The Goods & Services Tax Linked Incentive (GSTLI) under the New Central Sector Scheme 2021 returns the GST a unit in Jammu & Kashmir pays on its output.

The incentive is 100% of gross payment of GST — that is, GST paid through both cash and input tax credit — for a maximum period of 10 years from the date of commencement of commercial production or operation, or until the validity of the scheme, whichever comes earlier.

Two caps shape what you actually receive: the ten-year window, and an overall ceiling of 300% of the investment made in plant and machinery. New units and existing units undertaking substantial expansion can both claim it, so it works as a long-running operating-cost offset for units that have already committed capital in the UT.