If you run a Micro, Small, or Medium Enterprise (MSME) in Rajasthan, the Benefits for MSME under RIPS 2024 provide numerous opportunities to boost your business. Whether you’re starting a new venture or expanding, RIPS 2024 offers valuable incentives to support your growth.
What is the Definition of MSME under RIPS Scheme?
Definition of MSME: RIPS scheme follows the classification of Micro, Small, and Medium Enterprises prescribed by the Government of India, based on investment in plant and machinery or equipment and annual turnover:
- A micro enterprise, where the investment in plant and machinery or equipment does not exceed ₹2.5 crore and turnover does not exceed ₹10 crore;
- A small enterprise, where the investment in plant and machinery or equipment does not exceed ₹25 crore and turnover does not exceed ₹100 crore; and
- A medium enterprise, where the investment in plant and machinery or equipment does not exceed ₹125 crore and turnover does not exceed ₹500 crore.
Important: Both criteria i.e. investment and turnover must be satisfied for an enterprise to fall within a given category. If an enterprise exceeds the specified limit under either condition, it moves to the next larger category, even if it satisfies the limit under the other condition.
Example: Suppose a business has an investment of ₹2 crore in plant and machinery (within the micro limit of ₹2.5 crore), but its annual turnover is ₹15 crore (exceeding the micro turnover limit of ₹10 crore, and within the small enterprise turnover limit of ₹100 crore). Since the turnover exceeds the micro threshold, the enterprise will be classified as a small enterprise, not a micro enterprise regardless of its investment being well within the micro limit.
What are the Eligibility Criteria of Benefits for MSME under RIPS 2024 Scheme?
Who can apply for RIPS Benefits:
Any MSME setting up a new enterprise or undertaking an eligible expansion in Rajasthan can apply for benefits under RIPS 2024, provided it isn’t engaged in an ineligible activity as mentioned below.
Manufacturing sector benefits under RIPS Scheme:
All kinds of manufacturing enterprises across sectors are eligible to apply for RIPS benefits except enterprises engaged in ineligible businesses mentioned below.
Eligible service sectors in RIPS 2024
The following service sectors qualify for benefits under RIPS Scheme in Rajasthan, each carrying its own definition under the scheme, only enterprises meeting that definition qualify:
- IT and ITES
- Tourism
- Fintech
- Entertainment
- Film City
- Common Utility Centre
- Plug and Play Office Complex
- Social Infrastructure
- Health Care
- Civil Aviation
- Sports Academy
- AVGC-XR (Animation and Media-related activities)
- Higher Education
- Vocational Training and Skilling
- Knowledge-Based Industries
Enterprises that are not eligible to claim benefits under RIPS:
Tobacco, tobacco products and pan masala manufacturing; cow beef processing; retail/trading activities; City Gas Distribution System; and any activity otherwise prohibited by the State or Central Government.
Is MSME Enterprises doing an Expansion in capacity eligible for applying for benefits in RIPS 2024?
Yes. While the original RIPS 2024 notification restricted expansion benefits to Large Enterprises only, this was amended by Order No. F.12(32)FD/Tax/2024-Pt-II-03 dated May 16, 2025, which restored expansion eligibility for MSMEs. The applicable conditions now depend on which package the MSME applies under:
Under the MSME Standard Package: No minimum investment floor applies. The MSME only needs to satisfy the proportional test — expansion investment of at least 25% of its existing investment, and an incremental capacity increase of at least 20%.
Opting into the Large Enterprise (Manufacturing/Services) Package: MSMEs with larger expansions can opt in to bypass the ₹5 crore annual MSME incentive cap, but must then satisfy both the absolute investment floor (₹25 crore) and the same proportional test (25% investment / 20% capacity).
Can an MSME with an Investment exceeding Rs. 25 Crores apply for benefits under RIPS 2024?
MSMEs with an Eligible Fixed Capital Investment exceeding Rs. 25 Crores may choose to apply for benefits under either.
- Under MSME Category
- Under Large Enterprises Manufacturing Category
- Under Large Enterprises Service Category
What is the Maximum Limit of Benefits available to MSMEs under RIPS 2024?
Please note that the total incentives for MSMEs availing benefits under this scheme is limited to Rs. 5 Crores per annum.
The gap between what RIPS 2024 offers and what actually gets sanctioned often comes down to how your EFCI is calculated and structured. We’ve seen straightforward-looking projects get their claims reduced simply because the investment breakup wasn’t documented the way the scheme requires. Worth getting this checked before you finalize your project report, not after.
What Incentives are available to MSME Enterprises under RIPS 2024?
An MSME can apply for the following incentives under RIPS 2024.
SGST Refund: You can get 75% reimbursement on the SGST deposited by your business via Cash Ledger (after taking GST Input) for the next 10 years. This means that if your business has most of the sales within Rajasthan, then you have a good chance at becoming eligible to claim this benefit.
Interest Subsidy: If you are taking loan to set up your business, you can claim the following interest subsidy under RIPS 2024.
- 6% Interest Subsidy for loans up to ₹5 crores.
- 4% Interest Subsidy for loans between ₹5 crores and ₹10 crores.
- 3% Interest Subsidy for loans above ₹10 crores.
This means that a significant portion of the interest on your loans will be paid by the government, making your business finances much easier to handle.
PF and ESI Refund: If you are registered under PF and ESI, you can get 50% refund for your contribution to their EPF (Employees’ Provident Fund) and ESI (Employees’ State Insurance) for 7 years. This is a great way to grow your workforce without worrying too much about cost
Fundraising Subsidy: If you’re raising capital to expand your business, you can get 50% of the cost involved in raising funds (up to ₹5 lakhs). This can be a huge help when looking for funds to take your business to the next level.
What are the various Exemptions available to MSMEs under RIPS 2024?
RIPS 2024 also offers some helpful exemptions to reduce your operational costs:
- Electricity Duty Exemption: You’ll get 100% exemption from electricity duty for 7 years, which can save you a lot of money, especially if your business uses a lot of power.
- Mandi Fees Exemption: If your business is involved in agricultural trading, you’ll get 100% reimbursement on mandi or market fees for 7 years.
- Stamp Duty Exemption: When you purchase or lease land, you’ll get 75% exemption on stamp duty and 25% reimbursement on it. This is a great incentive available for the enterprises which are planning to purchase or lease out the land for setting up their business in Rajasthan.
- Conversion Charges Exemption: Similarly, you’ll get 75% exemption and 25% reimbursement on conversion charges.
To Sum Up
RIPS 2024 is a powerful tool to help MSMEs in Rajasthan grow, compete, and succeed. The scheme offers financial support, exemptions, and incentives to make your journey easier. So, if you are running an MSME in Rajasthan, it’s time to take advantage of these benefits and watch your business reach new heights!
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FAQs: Benefits for MSMEs under RIPS 2024 in Rajasthan
Q. What are the benefits for MSMEs under RIPS 2024 scheme in Rajasthan?
MSMEs in Rajasthan can avail benefits under the RIPS 2024 scheme including tax reimbursements, interest subvention on loans, employment generation incentives, capital subsidies, and soft loans for cluster setups. These incentives help businesses expand, innovate, and reduce operational costs.
Q. Where can I find the RIPS 2024 MSME benefits PDF?
you can download the official RIPS 2024 scheme document here. RIPS 2024 Scheme PDF It lists all eligibility criteria, benefits, and procedures for MSMEs.
Q. Are benefits for MSMEs available under RIPS 2022 still applicable?
RIPS 2024 has replaced the previous RIPS 2022 scheme. While some incentives continue, businesses must follow the updated guidelines under RIPS 2024 to avail the benefits.
Q. What is the RIPS Subsidy Scheme?
The RIPS Subsidy Scheme provides financial support to MSMEs and other enterprises in Rajasthan through tax reimbursements, capital subsidies, interest subvention, exemptions, and cluster incentives to encourage industrial growth and employment generation.
Q. How does RIPS 2024 help MSMEs?
RIPS 2024 helps MSMEs by reducing state taxes, lowering loan interest, offering capital support, providing employment incentives, and supporting cluster-based infrastructure, making it easier for small and medium businesses to expand in Rajasthan.
Q. Can MSMEs claim RIPS benefits on GST?
Yes, RIPS 2024 allows reimbursement of state taxes, including applicable GST paid on eligible investments, under the Investment Subsidy or Capital Subsidy options.
Q. What is the full form of RIPS?
RIPS stands for Rajasthan Investment Promotion Scheme. RIPS 2024 is the state government’s flagship incentive scheme offering tax reimbursements, interest subvention, capital subsidies, and exemptions to businesses setting up or expanding operations in Rajasthan.
Q. Is RIPS 2024 also known as Rajasthan Nivesh Protsahan Yojana? What is its main focus
Yes, RIPS 2024 is also referred to as Rajasthan Nivesh Protsahan Yojana. Its main focus is to attract new investment into Rajasthan and support existing businesses in expanding, by offering tax reimbursements, interest subsidies, and exemptions that reduce the cost of setting up or scaling operations in the state.
Q. What is EFCI under RIPS 2024?
EFCI stands for Eligible Fixed Capital Investment — the investment amount used to determine which incentive slab and category an enterprise qualifies for under RIPS 2024.
Q. What are the official RIPS 2024 guidelines?
You can download RIPS 2024 guidelines officially released by government of Rajasthan here RIPS 2024 Guidelines PDF. Businesses should refer to the latest amended guidelines when assessing eligibility.