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RIPS Subsidy for Service Sector and IT Companies: Complete Guide

By February 20, 2026
The service industry and the IT industry are growing quickly across Rajasthan. Many entrepreneurs are looking at incentives from the government to cut operating expenses and improve the competitiveness of their businesses. A prime example of advantageous incentive programs is the RIPS subsidy that is offered by the Rajasthan Investment Promotion Scheme (RIPS). Although the scheme is typically linked to manufacturing, it also offers significant benefits to IT companies as well as service companies, startups, BPOs, logistics units, and technology-based businesses. In this comprehensive guide, we explain the ways in which it is that the RIPS subsidy assists the service industry and the IT industry, including benefits, as well as eligibility, incentives, and the application process.

Understanding RIPS Subsidy for Service & IT Businesses

This RIPS Subsidy has been designed to encourage new investments and boost economic development within the state. For service companies, specifically IT-related companies, it provides advantages in terms of financial savings that reduce taxes, operating expenses, and capital investment burdens. If you’re establishing an IT company, BPO center, IT park, logistics hub, warehouse, or even a service launch, RIPS can help assist in making your business financially feasible. Since the government is firmly focused on expanding digital capabilities, job creation services receive an important boost under the RIPS framework.

Key Benefits of RIPS Subsidy for Service Sector & IT Companies

1. SGST Reimbursement

A very appealing incentive available under the RIPS Subsidy is the SGST reimbursement. Based on the type, the company can claim between 50% and 75 percent of the State GST imposed on sales over many years. This decreases the cost of operations and dramatically increases cash flow.

2. Capital Investment Subsidy

Service companies like IT offices and co-working spaces, data centers, and warehouses are eligible for an investment subsidy in accordance with:
  • Cost of building
  • Technology infrastructure
  • Equipment or machinery
  • Software tools and IT setup
This reduces the initial cost of building new facilities.

3. Electricity Duty Exemption

Electricity is among the most expensive expenses for service and IT departments. According to the RIPS Subsidy, businesses can get a complete exemption from electricity duties for a set period, particularly if they generate jobs. This is especially beneficial for:
  • IT parks
  • Call centers
  • Data centers
  • Cloud service facilities

4. Stamp Duty & Land Tax Relief

RIPS assists investors in the IT and service sectors in reducing the cost of their projects through:
  • Stamp duty exemption for office or land purchases
  • Conversion charge relief
  • Tax concessions for land
Commercial expansion is feasible.

5. Interest Subsidy on Loans

To help ease the repayment of short-term loans, RIPS provides an interest subsidy to help companies cut down on monthly EMIs. This is particularly beneficial for small and start-up IT businesses.

6. Employment Generation Subsidy

The service industry is a major source of employment. RIPS promotes the creation of jobs by providing assistance to local businesses in hiring workers, particularly females.

Eligibility for RIPS Subsidy in the Service and IT Sector

Eligibility requirements may differ, but typically include:
  • Expanding or new service sector units
  • IT/ITeS companies
  • Logistics, warehouses, and data center units
  • BPO, KPO, and call center operations
  • Co-working spaces for the smallest expenditure
  • Companies that are registered business entities (Pvt Ltd., LLP, Partnership, Proprietorship)
  • Conformity with the state’s norms
Certain services, like software-based services, digital businesses, and other tech-enabled activities, are given priority because of their potential for employment.

Step-by-Step Process to Apply for RIPS Subsidy

1. Project Planning & Documentation

Begin with a clearly defined business plan, including:
  • Cost of the project
  • Infrastructure needs
  • Employment projections
  • Revenue model
A properly prepared DPR can speed approvals.

2. Registration on Single Window Portal

You can apply using the Rajasthan Single Window System (SWS), in which you’ll be able to send your
  • Company documents
  • GST registration
  • Lease or land papers
  • Project details
  • Investment proofs

3. Obtain Approval

The application is scrutinized by state officials. After approval, your project will be eligible for RIPS Subsidy benefits.

4. Start Operations

When the unit is fully operational, you are eligible to get incentives such as SGST reimbursement as well as exemptions from the duty on electricity, or an interest rebate.

5. Claim Subsidy

Submit the subsidies regularly via the designated portal with statements of tax, bills, and financial reports.

Summary

The IT and service sector has huge potential for growth in Rajasthan. In addition, it’s the RIPS Subsidy can provide the financial incentive necessary to boost growth. If you’re starting a technology company, growing the size of a BPO operation, or setting up the first digital service company, RIPS can reduce costs as well as increase profitability. help ensure sustainability for the long term. To get expert advice on the preparation of documentation, DPR preparation, and the filing of subsidy payments from end to end, you can depend upon Subsidy Mantra as your reliable supplier of business incentives in Rajasthan.

FAQs

1. Do IT companies qualify for the RIPS Subsidy?

It is true that IT as well as ITeS units can be eligible for multiple incentives under RIPS.

2. What is the primary advantage of the RIPS Subsidy for service companies?

The most significant benefit is SGST reimbursement, as well as the exemption from electricity duty.

3. Are there RIPS programs for start-ups?

Yes, qualified startups in IT and service logistics, digital, and IT sectors are able to apply.

4. How long will RIPS benefits will they last?

Typically, 7-10 years, based on the project’s category and kind.

5. Can existing service units get the RIPS Subsidy?

Existing units may be eligible for benefits when they undergo an approved expansion. Follow Subsidy Mantra on Instagram for daily subsidy updates and subscribe to YouTube for expert guidance on business schemes and incentives.
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