Karnataka SGST Reimbursement

The Karnataka startup policy offers reimbursement of SGST (and legacy VAT) to eligible incubated startups up to turnover-linked limits, particularly to encourage startups operating beyond Bengaluru. Karnataka's SGST reimbursement incentive is capped to startups with annual turnover up to ₹50 lakh and applies for the first three years after formal incubation, meaning it functions as an early-revenue relief measure rather than an ongoing subsidy for scaled companies. Eligibility requires physical incubation at a Government of Karnataka-supported incubator in addition to Startup Cell registration, which is a stricter bar than GST registration alone.