The technological revolution driven by Information Technology (IT) and Information technology-enabled services (ITeS) has transformed the global economy. These advancements allow even smaller businesses to compete with industry giants, bridging geographical gaps through efficient communication and streamlined operations. In this article, we will cover everything you need to know about Gujarat IT/ITeS to help you leverage this scheme for your business. 

What Is Gujarat IT/ITeS Policy?

Gujarat, the leading industrial state in India, offers a fertile ground for IT/ITeS businesses, backed by solid infrastructure and a strong focus on the Ease of Doing Business (EoDB). 

On the lines of it, the Gujarat IT/ITeS Policy (2022-27) is designed to attract investments, create jobs, and position the state at the forefront of the IT/ITeS industry. Here are a few pointers that would help you with the details. 

Objectives of the Gujarat IT/ITeS Policy 2022-27

The main goals of the Gujarat IT/ITeS Policy 2022-27 are to:

• Create a highly-skilled, industry-ready IT talent pool.
• Provide state-of-the-art IT infrastructure.
• Develop a simplified incentive scheme.
• Establish a vibrant cloud ecosystem.
• Encourage the startup ecosystem.
• Foster research and development in new technologies like AI, IoT, Machine Learning, Quantum Computing, and Blockchain.

Eligible IT/ITeS Unit

An eligible IT/ITeS unit is defined as any IT/ITeS business with a minimum of 10 employees, setting up operations in Gujarat during the policy’s operative period, or an existing unit in Gujarat undergoing expansion with a minimum of 15 employees post-expansion. 

The policy is effective from the Government Resolution (G.R.) date and will remain in force until March 31, 2027. 

Entities that apply for assistance before this date and commence operations before March 31, 2028, are eligible for the incentives provided under this policy.

What Businesses Need to Know About Gujarat IT/ITeS Policy 2022-27? 

The Gujarat IT/ITeS Policy 2022-27 offers various incentives to eligible businesses to promote growth and development in the IT/ITeS sector. Here’s a detailed table summarising the key incentives:

How Can Businesses Apply for the Policy?

The new Incentive Management Portal developed by the Directorate of ICT & e-Governance is a game-changer for businesses in Gujarat’s IT/ITeS sector. This portal handles incentive applications, claims processing, disbursement, dispute resolution, empanelment of co-working IT office spaces, and applications for IT skill development courses. 

All existing IT/ITeS units in Gujarat must register on this portal to avail of the policy benefits.

Procedure

• Application and Approval: The portal allows for a seamless submission of incentive applications and provides in-principle approval, reducing the complexity and time involved in the approval process.
• Claim Management: Businesses can submit their CAPEX and OPEX claims through the portal, facilitating smooth management and tracking of financial incentives.
• Financial Support: Once claims are approved, the portal quickly processes and initiates disbursement of funds, helping businesses manage their cash flow and financial planning effectively.

Note: All eligible new units must submit their incentive application within one year from the start of commercial operations. Similarly, all eligible expansion units must submit their incentive application within one year from the month they achieve the eligible employee count.

Timelines for Claim Eligibility Period for the Incentives

To ensure that businesses can maximise their benefits under the Gujarat IT/ITeS Policy 2022-27, it is crucial to adhere to the specified timelines for submitting claims as given:

CAPEX Claims:

• New Units, Data Centers, and Cable Landing Stations: Claims can be made from the first investment bill or February 7, 2022, whichever is later, up to 2 years from the start of commercial operations.
• Expansion Units: Claims can be made from the first investment bill from the month of declaration of expansion or February 7, 2022, whichever is later, up to 2 years from achieving the eligible employee count.

OPEX Claims:

• IT/ITeS Units: Claims can be made for 5 years starting from the month of eligibility or in-principle approval, whichever is later.
• Data Centers and Cable Landing Stations: Power tariff subsidy claims for 5 years from the month of eligibility or in-principle approval.

Special Incentives:

• Employment Generation Incentive (EGI): Claims for new units can be made for 5 years from the date of incorporation or in-principle approval. For expansion units, claims can be made for 5 years from the date of declaration of the expansion or in-principle approval.
• Atmanirbhar Gujarat Rojgar Sahay: Support for employment generation for 5 years starting from the month of eligibility or in-principle approval, whichever is later.
• Electricity Duty Incentive (EDI): Exemption for 5 years starting from the month of eligibility or in-principle approval, whichever is later.
• Interest Assistance: Available for 5 years starting from the date of actual interest repayment.
• Special Incentives for IT/ITeS Units: Conditions vary as per specific incentives.

Conclusion

With incentives aimed at reducing operational costs, supporting infrastructure development, and promoting talent upskilling, Gujarat is poised to become a preferred destination for IT/ITeS businesses. 

This policy fosters an innovative ecosystem and strengthens Gujarat’s position as a global financial and IT hub, making it an attractive destination for domestic as well as international investors. 

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