What is SGST reimbursement for hotels?
Under the Maharashtra Tourism Policy 2024, eligible tourism units receive reimbursement of State Goods and Services Tax (SGST) actually paid on net basis. This is one of the most valuable long-term incentives — particularly for hotels in Zone C and Specially Declared Tourism Zones where 100% of net SGST is reimbursed for up to 10 years.
Zone-wise SGST reimbursement (Large / Mega hotels)
Hotels and resorts with 10+ rooms typically qualify under Large / Mega schedules below. MSME and homestay units follow different eligibility periods (see next section).
| Zone | Reimbursement rate | Eligibility period | Coverage |
|---|---|---|---|
| Zone A | 50% of net SGST paid | 5 years | Mumbai, Thane, Navi Mumbai Municipal Area |
| Zone B | 75% of net SGST paid | 7 years | Nashik, Pune, Aurangabad, Nagpur Municipal Corporations |
| Zone C | 100% of net SGST paid | 10 years | Rest of Maharashtra (excluding Zones A & B) |
| STZ / STD | 100% of net SGST paid | 10 years | Specially Declared Tourism Zones & Destinations |
MSME tourism units — SGST schedule
| Zone | SGST rate | Period |
|---|---|---|
| A | 50% of net SGST | 5 years |
| B | 75% of net SGST | 5 years |
| C | 100% of net SGST | 7 years |
| STZ/STD | 100% of net SGST | 7 years |
Key rules for SGST claims
- Reimbursement is on net SGST actually paid — not gross turnover
- Total reimbursement cannot exceed eligible Fixed Capital Investment (FCI)
- Claims filed annually with SGST returns and CA certification
- Unit must be registered with Directorate of Tourism with valid eligibility certificate
- GST bills of Maharashtra State accepted for turnover-linked calculations
- Reimbursement processed on quarterly or annual basis per DoT guidelines
SGST refund for hotels in Mumbai (Zone A)
Hotels in Mumbai, Thane, and Navi Mumbai (Zone A) receive 50% SGST reimbursement for 5 years. While lower than Zone C, combined with the 20% capital subsidy and 50% stamp duty exemption, Mumbai hotel projects still achieve substantial total policy benefits.
How to claim SGST reimbursement
- Obtain PRC and eligibility certificate from Directorate of Tourism
- Commence commercial operations and register for GST in Maharashtra
- File annual SGST reimbursement application with tax payment proofs
- Submit CA-certified statement of net SGST paid during the claim period
- DoT verifies and disburses approved reimbursement amount