Why AP's SGST window matters for hotels
Andhra Pradesh Tourism Policy 2024–29 (APTP) targets ₹25,000 crore investment with industry status for hospitality. The flagship fiscal benefit is SGST reimbursement of up to 100% of net SGST paid, for up to 15 years — one of the longest reimbursement periods among Indian state tourism policies.
For hotels with strong room revenue and F&B turnover, 15-year SGST recovery can exceed capital subsidy value — especially for large and mega projects where the reimbursement percentage and duration scale with investment.
SGST benefit by project type
| Category | SGST reimbursement | Duration | Capital subsidy |
|---|---|---|---|
| MSME tourism | Up to 100% | Up to 15 years | 25% of FCI |
| Large / mega | Scaled by investment | Up to 15 years | 10% of FCI |
| Ultra-mega / anchor | Negotiated package | Maximum period | Negotiated |
| Electricity | Industrial tariff + 5-yr duty exempt | 5 years | Stacks with SGST |
CategoryMSME tourism
SGST reimbursementUp to 100%
DurationUp to 15 years
Capital subsidy25% of FCI
CategoryLarge / mega
SGST reimbursementScaled by investment
DurationUp to 15 years
Capital subsidy10% of FCI
CategoryUltra-mega / anchor
SGST reimbursementNegotiated package
DurationMaximum period
Capital subsidyNegotiated
CategoryElectricity
SGST reimbursementIndustrial tariff + 5-yr duty exempt
Duration5 years
Capital subsidyStacks with SGST
Annual claim requirements
- Tourism project registration with AP Department of Tourism
- GST registration and regular SGST return filing
- Commercial operations certificate from local authority
- Annual audit and compliance documentation
- Quality certification reimbursement available separately at 100%
Related AP guides
MSME capital subsidy · Stamp duty reimbursement · Visakhapatnam hotel guide · How to apply — AP
More Andhra Pradesh incentive guides
Stamp duty reimbursement · MSME capital subsidy · Coastal tourism incentives