Maharashtra Govt Grants 5-Year Tax Rebates To Boost Dharavi's Business Formalisation Under Redevelopment Project

Maharashtra Govt Grants 5-Year Tax Rebates To Boost Dharavi's Business Formalisation Under Redevelopment Project

The tax rebate will come into effect after the newly constructed buildings receive the occupation certificate (OC).

Draupadi RoheraUpdated: Monday, February 26, 2024, 07:59 PM IST
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Dharavi redevelopment project | BL Soni

The state government has offered tax benefits like reimbursement of State Goods and Services Tax (SGST) to rehabilitated businesses in Dharavi for five years. The move will help local businesses thrive and survive during the transition phase of the Dharavi Redevelopment Project.

A press note issued by the Dharavi Redevelopment Project Pvt Ltd (DRPPL) on Monday said that eligible industrial and commercial units in redeveloped Dharavi will enjoy benefits, such as a refund of SGST, to boost and help formalise local businesses. This is as per the tender conditions, the press note added.

The DRPPL

DRPPL is a joint venture between the Government of Maharashtra and the Adani Group.

“Redevelopment will transform the informal nature of businesses in Dharavi and enable them to be a part of the India growth story. To support this transition, the state government has offered tax benefits, like the reimbursement of SGST. This will provide existing and new businesses in Dharavi a robust footing and boost their profitability. It will make the businesses more competitive and give them manifold growth opportunities,” said a DRPPL spokesperson.

The tax rebate

The tax rebate will come into effect after the newly constructed buildings receive the occupation certificate (OC). As per the tender conditions, SGST for industrial and commercial units will be reimbursed by the Finance Department through the DRP/SRA for five years from the date of issuance of the OC. Eligible industrial and commercial units will have to provide SGST payment details as proof while claiming the refund.

Dharavi encompasses several thousand industrial and commercial units manufacturing garment and leather items. Many are vendors for large national and international brands sold across the world, with turnover estimated to be in millions of dollars. They are keen to formalise their businesses to expand and get a fillip, both locally and globally.

It is DRPPL’s endeavour to transform Dharavi into a globally connected city with commercial and industrial premises, keeping its vibrant and unique entrepreneurial culture intact, the press note said.

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