The Government of Rajasthan, Finance Department (Tax Division), has issued an order introducing 12 significant amendments to the Procedural Guidelines of the Rajasthan Investment Promotion Scheme, 2024 (RIPS-2024), aimed at strengthening transparency, improving procedural efficiency, streamlining verification of investment applications and clarifying the eligibility and computation of various investment-linked incentives.
The amendments have been notified through Order No. F.12(32)FD/Tax/2024-Pt-II-36 dated October 23, 2026, in exercise of the powers conferred under Clause 7.3.1 of RIPS-2024, in the public interest.
Mandatory Auto-Verification of PAN, GSTIN and Enterprise Details
Under the amended Sub-Clause 1.11, the Government has introduced automated verification of enterprise information during evaluation of applications submitted through Form 3A for obtaining an Entitlement Certificate (EC).
The verification process shall include validation of PAN and GSTIN, matching of the enterprise name appearing in PAN, GSTIN and the RIPS application, and verification of the share of land value in Eligible Fixed Capital Investment (EFCI), as prescribed under the policy.
This amendment strengthens the verification framework for determining eligibility for investment incentives.
Land Registration Linked to Automated Validation; 75% Stamp Duty and Conversion Charges Exemption Retained
The Government has substituted Sub-Clause 3.5 to introduce automated validation by the Registration & Stamps Department before enterprises can register land in their names for projects after obtaining the Entitlement Certificate.
The verification shall ensure that the beneficiary enterprise’s name in the EC matches the purchaser’s name in the registration documents and that the Khasra or Plot numbers correspond with the land details recorded in the EC.
Subject to eligibility, enterprises may avail 75% exemption from Stamp Duty and 75% exemption from Conversion Charges, while the remaining 25% paid may be claimed after commencement of commercial operations. Eligible enterprises may also avail the Flexible Land Payment Model for purchase of RIICO land under RIPS-2024.
Revised Procedure for Amendment of Land Details in Entitlement Certificate
Through the amendment to Sub-Clause 3.7, the authority to approve amendments to project land details has been assigned to the Member Secretary of the appropriate Sanctioning Committee, replacing the earlier provision empowering the Commissioner of Industries and Commerce to issue an amended EC.
Following such approval, a fresh Entitlement Certificate providing 100% reimbursement for the amended land shall be issued, and the earlier Entitlement Certificate granting 75% exemption shall be cancelled.
Annual Incentive Ceiling Clarified for Multi-Phase Investment Projects
A new provision inserted in Sub-Clause 6.1.4 clarifies the calculation of annual incentive ceilings where different phases of an investment project operate concurrently within their respective incentive tenures.
Where multiple phases are eligible in a particular year, the applicable annual ceiling shall be the higher of the individual ceilings applicable to the respective phases, and not their aggregate. Where only one phase remains within its applicable incentive tenure, the ceiling applicable to that phase shall prevail.
The Government has also provided an illustration explaining the determination of annual ceilings ranging from ₹50 crore to ₹80 crore across different phases and project years.
Expansion Incentives Rationalised for Partial Financial Years
The amendments to Sub-Clauses 6.2.3 and 6.2.4 clarify the calculation of incentives where commercial operations of an expansion project commence during a financial year.
Where benefits are payable for only part of a financial year, the relevant benchmark turnover and State tax amounts shall be rationalised for the applicable part of that year.
Additionally, for projects that commenced commercial operations less than three years before undertaking expansion-related investment, the computation under Sub-Clause 6.2.4 has been revised to refer to the maximum State tax liability, instead of the earlier reference to maximum State tax due and deposited, in any month preceding the commencement of expansion operations, rationalised into annual figures.
These changes clarify the methodology for determining incremental benefits in expansion projects.
Electricity Duty Exemption to Consider Multiple Power Connections
Under the newly inserted provisions in Sub-Clause 6.2.11, the Government has clarified that where an enterprise operates multiple electricity connections for a single unit, consumption across all such connections shall be considered cumulatively for calculating Electricity Duty Exemption, subject to the applicable provisions of RIPS-2024.
Further, where expansion operations commence during a financial year, the benchmark electricity consumption shall be proportionately rationalised for the relevant period.
This provision provides clarity to enterprises operating through multiple electricity connections at the same unit.
Mandi Fee Reimbursement Rules Revised for Expansion Projects
The Government has substituted Sub-Clause 6.2.12 to clarify the computation of Market/Mandi Fee reimbursement in cases involving expansion of existing enterprises.
The reimbursement shall apply only to the additional turnover generated after expansion, over and above the prescribed benchmark based on the maximum annual turnover during the preceding three financial years on which the fee was payable and deposited, subject to the specified exemptions under earlier RIPS schemes or RIPS-2024.
For enterprises with less than three years of operations before expansion, the benchmark shall be calculated using the maximum monthly Mandi Fee payable before commencement of expansion operations, rationalised into annual figures.
The amendment also provides for proportionate rationalisation where benefits are payable for only part of a financial year.
Enterprises Allowed to Avail Standard Incentives Pending Customized Package Eligibility
A significant flexibility has been introduced through the insertion of Sub-Clause 6.4.3, permitting enterprises with an approved Customized Incentive Package under RIPS-2024 to apply for and avail benefits under the applicable Standard Incentive Package while awaiting fulfilment of the conditions stipulated under their Customized Package.
Once the enterprise satisfies the conditions of the Customized Package, it may avail customized incentives for the remaining incentive tenure after deducting the period for which Standard Incentives were availed.
However, where an enterprise does not avail Standard Incentives during the intervening period, it shall remain eligible for the full incentive tenure under the approved Customized Package.
This amendment offers greater flexibility in accessing eligible incentives during project implementation.
New Chartered Accountant Certification Format Introduced for Payroll Subsidy
The Government has inserted Sub-Clause 7.4.22, introducing CA Format 22 — Employment Declaration for Payroll Subsidy, to standardise documentation and verification requirements for employment-linked incentives.
The prescribed format requires details of the enterprise, eligible domiciled employees, employees covered under ESI/EPF, salary payments and the subsidy amount, with the form specifying 50% of gross salary up to ₹8,000 per employee.
The enterprise must attach employee-wise information, including names, PAN, Aadhaar, domicile status, ESI/EPF numbers and gross monthly salaries.
The certificate must be verified and signed by a Chartered Accountant with UDIN, based on examination of books of accounts, payroll records, attendance registers, PF challans and other relevant documents. A separate declaration by the authorised representative of the enterprise is also prescribed.
Commercial Operation Date Clarified for Renewable Energy Projects Commissioned in Phases
Through insertion of Sub-Clause 9.19, the Government has clarified the date of commencement of commercial operations for renewable energy generation projects commissioned in phases.
The date of commercial operations shall be the date of issuance of the Synchronization Certificate by the concerned DISCOM or regulatory entity, irrespective of whether the entire installed capacity of the project has been commissioned by that date.
This clarification provides a defined basis for determining the commencement date of commercial operations for phased renewable energy projects under RIPS-2024.
Significance for Investors and Enterprises
The amendments introduce additional verification safeguards, clarify the computation of incentives for expansion and multi-phase projects, strengthen employment subsidy certification requirements and provide operational flexibility to enterprises covered under customized incentive packages.
The revised guidelines are particularly relevant for manufacturing enterprises, expanding industrial units, renewable energy developers, enterprises acquiring industrial land, and businesses claiming payroll subsidies, electricity duty exemptions and other investment-linked incentives.
Overall, the amendments seek to provide greater clarity and consistency in the administration of the Rajasthan Investment Promotion Scheme, 2024, while ensuring that the grant and computation of incentives remain aligned with the prescribed eligibility conditions.
The Order can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/10/Amendment-in-Procedural-Guidelines-of-Rajasthan-Investment-Promotion-Scheme-2024-RIPS-2024.pdf
