Incentives to Encourage Purchases from Local Suppliers Scheme

Incentives to Encourage Purchases from Local Suppliers Scheme is a Goa state government scheme that helps manufacturing units by providing a 2% reimbursement on eligible local purchases. This scheme supports local MSMEs, ancillary units, and traders by encouraging businesses to source materials from within Goa, offering up to ₹5,00,000 per year in money help.

Launched by the Directorate of Industries, Trade and Commerce (DITC), Government of Goa, this program is active as of August 2026. Eligible manufacturing units can claim a reimbursement of 2% on the cost of local purchases consumed by their unit, capped at ₹5,00,000 annually for five consecutive years from the date of the first application. Applications are submitted after the closure of every financial year through the Goa Online Portal.

Incentives to Encourage Purchases from Local Suppliers Scheme

This scheme aims to boost the local economy of Goa by promoting consumption of locally sourced industrial inputs. It encourages manufacturing units to prioritize local sourcing, thereby supporting the growth of ancillary units, MSMEs, and traders, including those in the horticulture and food processing sectors. Directorate of Industries, Trade and Commerce (DITC) administers the program under the Goa State Incentives to Encourage Investments Scheme (Umbrella Scheme).

The 2024 notification re-affirms the scheme rules. The application process is now available online through the Goa Online Portal, making it easier for manufacturing units to submit their claims. The official scheme notification PDF is available on the Government of Goa website.

Benefits

Eligible manufacturing units receive a reimbursement of 2% on the cost of local purchases consumed by their unit, capped at ₹5,00,000 per year. The value of local purchases is calculated excluding Goods and Services Tax (GST).

Definition of Local Purchase: Local purchases include all industrial inputs like consumables bought from within Goa, regardless of where they were originally manufactured. Services are not covered under this scheme.

Duration: You may claim this benefit for five consecutive years from the date of your first application.

Budgetary Note: Payment of benefits depends on available budgetary allocations. The government does not provide promissory estoppel if benefits are discontinued due to budget limits.

Conditions for Eligible People: You should grant free access to authorized DITC officials for inspections, supervision, or discussions to ensure proper use of financial support. You should submit all reports, information, and documents as and when directed by the DITC. If you obtain incentives by misrepresenting facts or providing false information, the government will revoke your subsidy. You should return any financial incentives received if it is discovered that you did not meet the requirements, or they will be recovered as arrears of land revenue.

Eligibility

To qualify for Incentives to Encourage Purchases from Local Suppliers Scheme, you should meet the following criteria:

• Your manufacturing unit must fall under the white, green, or orange pollution category.
• Your facility must be registered as a micro, small, or medium manufacturing unit.
• You must purchase at least 50% of your raw materials, components, or tools from local sources within Goa.
• Your unit must be registered under the Umbrella Scheme (Goa State Incentives to Encourage Investments Scheme).
• You must not have claimed a similar benefit under any other program offered by the Government of Goa.

Exclusions

Certain items listed in the Schedule A of the scheme rules are not considered eligible local raw materials. These include:

• Natural resources such as water and air.
• Major and minor minerals like ore and sand.
• Alcoholic beverages.
• Tobacco and tobacco products.

Note: This list is indicative and not exhaustive.

Application Process

STEP 1: Log in to the Goa Online Portal at goaonline.gov.in and navigate to the Incentives to Encourage Purchases from Local Suppliers Scheme under the DITC department services. Click on the Apply button to start your application.

STEP 2: Download the prescribed application format and the Affidavit cum Declaration form from the official website or DITC office. Fill in all mandatory fields accurately and attach copies of the required documents.

STEP 3: Submit your signed and sealed application to the Directorate of Industries, Trade and Commerce after the closure of the financial year. The application must be filed by the end of December of the subsequent financial year.

Complaint help: If you have feedback, you should email it to dir-indu.goa@nic.in with the subject line Feedback/Comments on Incentives to Encourage Purchases from Local Suppliers Scheme.

Documents

You should keep the following documents ready for your application:

• Self-attested copy of registration under the Umbrella Scheme.
• Affidavit/Self-declaration in the specified format.
• Self-certified copies of purchase bills from local sources.
• Statement of local purchases with vouchers showing GST details.
• Final accounts for the claim year.
• Certificate from a Chartered Accountant (CA) confirming the purchases were made locally and used as raw material for manufacturing.
• Certificate from a CA stating no other similar benefit has been claimed.
• Copy of Partnership deed or Memorandum/Articles of Association.
• Copy of the Board Resolution authorizing the submission of the affidavit.
• Passport-size photograph of the applicant.

References

Official Scheme Notification (2024)

Scheme Details on MSME Goa Portal

Apply Online on Goa Online Portal

FAQ's

If my manufacturing inputs include tobacco products, do they count toward the local sourcing percentage?

No, tobacco and tobacco products are in the negative list (Schedule A) and do not count toward your eligibility calculations.

Is registration under the Umbrella Scheme mandatory?

Yes, you must be registered under the Goa State Incentives to Encourage Investments Scheme to qualify.

What pollution category must my unit belong to?

Your facility must be classified under the white, green, or orange categories.

How long can I receive this benefit?

You can receive the benefit for five consecutive years starting from the date of your first successful application.

Are minerals considered eligible raw materials?

No, major and minor minerals, such as sand or ore, are excluded from the definition of eligible raw materials.

How is the local procurement percentage calculated?

You should calculate the percentage based on the total value of raw materials, excluding items mentioned in the negative list (Schedule A).

What is the minimum business size required?

You must be a micro, small, or medium manufacturing enterprise to be eligible.

Do I need to submit reports after receiving the initial sanction?

Yes, you should provide all reports and documentation requested by the DITC periodically to maintain your compliance.

Are natural resources like water or air eligible?

No, natural resources are specifically excluded under the scheme rules.

Can I apply if I receive other state government benefits?

No, this scheme is not available if you have already claimed a similar benefit under another Government of Goa program.

How is a local purchase defined?

A local purchase refers to any industrial input or consumable bought from within Goa, excluding services.

Should I include GST in my purchase cost calculation?

No, you must calculate the subsidy value excluding the Goods and Services Tax (GST).

Are alcoholic beverage components eligible?

No, materials related to alcoholic beverages are ineligible as per Schedule A.

Will my unit be subject to inspection?

Yes, you must allow DITC officials access to your unit, registers, and employees to ensure you are utilizing the incentives correctly.