Internet Subsidy Scheme

What is the Internet Subsidy Scheme?

Internet Subsidy Scheme, 2018 is an incentive of the Department of Information Technology, Electronics and Communications, Government of Goa, framed under clause 6.2.7 of the Goa Information Technology Policy–2018. The scheme was ordered on 6 August 2018 by the Director and ex officio Joint Secretary (IT) and published in the Official Gazette, Series I No. 21, dated 23 August 2018 under notification number 2(7)/DOIT/2018/Internet Subsidy/754.

The objective in the notification runs to a single line: "To provide Internet Subsidy to the eligible IT units in the State of Goa." Behind that line is a real cost problem. A software development or IT-enabled services unit in Goa needs symmetric, high-speed leased bandwidth rather than a consumer broadband plan, and leased-line pricing is a recurring monthly drain on a small firm. The Government of Goa therefore refunds a quarter of that bill.

Internet Subsidy Scheme is not a household benefit. No individual can claim a refund on a home internet connection under this scheme. The applicant is always an IT unit operating in Goa.

Who is eligible for the Internet Subsidy Scheme?

A unit can claim if:

• The unit is new or existing and has its operations in Goa.
• The applicant takes one of five legal forms: a proprietorship firm, a private limited company or public limited company incorporated under the Companies Act 2013, a registered partnership firm under the Indian Partnership Act 1932, or a limited liability partnership under the LLP Act 2008.
• The bank accounts of the unit and of its partners or directors are linked to Aadhaar.
• The unit produces its Udyog Aadhaar.
• The bandwidth is high-speed bandwidth taken in the name of the unit. The bills must carry the unit's name and address.

A unit is not eligible if:

• The unit is availing similar financial incentives under any other policy of the Government of Goa. Clause 4.6 blocks the same expenditure being subsidised twice.
• The claim covers a period outside the three-year window described below.
• The connection is in a promoter's personal name rather than the unit's, so the bill does not show the unit's name and address.

Eligibility has to be re-earned each year. Clause 4.5 says units will be evaluated at the end of each fiscal year to verify whether they should continue receiving benefits under the scheme.

How much internet subsidy does a Goa IT unit get?

Clause 5 of the notification sets the amount plainly. All new and existing units can avail a 25% reimbursement on high-speed bandwidth, subject to a maximum of Rs 5 lakh per annum, whichever is lower.

Worked through, that means a unit spending Rs 8 lakh a year on leased bandwidth claims Rs 2 lakh, comfortably under the ceiling. A unit spending Rs 30 lakh a year would compute 25% as Rs 7.5 lakh but receives only Rs 5 lakh, because the annual cap bites.

The subsidy can be availed for a period of three years, counted from the date of commencement of operations or from the date of notification of the policy, whichever is later. For a unit that was already running in 2018, the clock starts at the policy notification; for a unit that began operations afterwards, it starts at the first bill generated.

How to apply for the Internet Subsidy Scheme

1. Register the unit with the Department of Information Technology by submitting Part 1 of the Common Application Form with the requisite documents, either by email or on the web portal. The department issues a unique registration number for the unit.
2. Pay the internet bills and keep both the bills and the payment evidence. Bills must clearly show the unit's name and address, so fix any billing-name mismatch with the service provider before the claim period rather than after.
3. File the claim by submitting Part 2 of the Common Application Form along with the incentive-specific forms to the Due Diligence Committee: Annexure 1 is the Internet Subsidy Form and Annexure 2 is the Declaration signed by the authorised signatory.
4. Fill in Annexure 1, which asks for the auto-generated registration number, the service connection, the name mentioned on the bill, the date the connection was obtained, the bandwidth or consumption, the total amount paid as internet bills, the period claimed and the amount eligible per the policy.
5. Upload the two claim documents — the internet bills for the claim period and the proof of payment of those bills.
6. Wait for the supported Committee. Clause 7.7 makes the committee the sole competent authority to accept or reject a claim, and its decision is final and binding on the applicant.

Applications can be filed quarterly, half-yearly or annually after the expenditure has been incurred, so a unit that would rather not carry the cost for a full year can claim every three months.

When does the money arrive?

The scheme publishes a fixed disbursement timeline counted from the day the incentive application is received, marked D in the notification:

The regret letter and the sanction order sit at the same step, so a rejection also reaches the applicant by day 90 rather than disappearing into silence.

Why internet subsidy claims get rejected

• Bills in the wrong name. The checklist requires the bills to show the name and address of the unit; a connection in a director's personal name fails.
• No proof of payment. The bill and the payment evidence are two separate checklist entries, and only paid expenditure is reimbursable.
• Udyog Aadhaar not produced, which fails clause 4.4 outright.
• Bank accounts not Aadhaar-linked for the unit or for its partners and directors.
• Overlapping incentive already claimed under another Government of Goa policy, which triggers clause 4.6.
• Claim outside the three-year window, counted from commencement of operations or the policy notification, whichever is later.
• Consumer broadband rather than high-speed bandwidth, which does not match the wording of clause 5.

How this fits with other Goa incentives

Internet Subsidy Scheme sits alongside a larger family of IT Policy 2018 schemes run by the same department: Capital Investment Subsidy, Registration and Stamp Duty Subsidy, Power Subsidy and Solar Power Subsidy, Salary Subsidy, Campus Recruitment Assistance, Patent Filing Reimbursement, Quality Certification Reimbursement, and a set of special incentives for smaller business units.

Startups are treated separately. Under Goa's Startup Policy, a start-up certified by the Startup and IT Promotion Cell that operates from its own or rented premises claims internet connectivity, software licence fees and cloud services fees together, subject to an upper limit of Rs 1 lakh per quarter for one year, rather than under this scheme. Retail educational institutes listed by the cell get their own internet subsidy of up to Rs 5 lakh a year under the Skill Development Promotion Scheme. A unit should pick the route that matches what it actually is, because clause 4.6 rules out claiming the same expenditure twice.

What is the current status of the scheme?

Clause 1.2 states the scheme comes into force from the date of its publication in the Official Gazette and remains in force for five years from the date of notification, which points to 23 August 2018 as the start. The Department of IT's live Policies and Schemes page continues to list the Internet Subsidy Scheme under IT Policy 2018 Schemes, which suggests it remains part of the department's active set, but the notification's own five-year clause means a unit should ask for the operative notification in writing before budgeting around it.

Clause 4.7 also warns that the provisions of the policy and its schemes are not binding representations or assurances, and that promissory estoppel will not apply against the government if a provision is not implemented.

Where to get help

• Startup and IT Promotion Cell helpline: 1800-233-5060
• Email: spc-dit.goa@gov.in
• Office: IT HUB, 2nd Floor, Altinho, Panaji, Goa 403001, Monday to Friday, 10:00 am to 5:30 pm
• Scheme text: the full notification with Annexure 1 and Annexure 2 appears in the Official Gazette Series I No. 21 dated 23 August 2018, published as ITPolicySchemes2018.pdf on goaonline.gov.in and startup.goa.gov.in

There is no fee to apply, and no consultant can obtain a sanction that the supported Committee has not approved on the documents.

How to check your application status

The notification does not describe an online tracking dashboard for the Internet Subsidy Scheme, so status checking works through the registration number and the fixed 90-day timeline rather than a portal login.

1. Keep the registration number safe. When a unit files Part 1 of the Common Application Form, the Department of Information Technology, Electronics and Communications issues a unique registration number. Quote this number in every follow-up, since Annexure 1 itself asks for it again at the claim stage.
2. Track the claim against the D-day timeline. Once Part 2 of the Common Application Form and the two annexures reach the Due Diligence Committee, that filing date becomes day D. Scrutiny against the checklist is due by D + 30, committee approval by D + 60, and the regret letter or sanction order together with disbursement by D + 90. If more than 90 days have passed since filing and neither a sanction order nor a regret letter has arrived, that is the point to escalate rather than wait further.
3. Call the Startup and IT Promotion Cell helpline on 1800-233-5060 with the registration number and the date the claim (Part 2, Annexure 1 and Annexure 2) was submitted, and ask which of the four stages, receipt, scrutiny, committee approval, or sanction/disbursement, the claim is currently at.
4. Email spc-dit.goa@gov.in as a written follow-up if the phone line does not resolve the query, referencing the registration number, the quarter or year being claimed, and the filing date. A written trail matters here because clause 7.7 makes the Due Diligence Committee's decision final and binding, so any dispute about timelines is easier to raise with a dated email in hand.
5. Visit the IT Hub office at 2nd Floor, Altinho, Panaji, Goa 403001, on a weekday between 10:00 am and 5:30 pm if the claim is well past D + 90 with no written response, and ask for the claim's file status in person.

Because disbursement and rejection sit at the same D + 90 milestone, a unit should not assume silence past that date means approval. The safest practice is to note the exact date Part 2 was submitted, count 90 days forward, and actively call or email if nothing has arrived by then rather than waiting indefinitely for the department to reach out first.