Grant of Quality Certification Reimbursement of Charges (Tamil Nadu MSME)

What is the Grant of Quality Certification Reimbursement of Charges?

Grant of Quality Certification Reimbursement of Charges is an incentive of the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu, administered through the Commissionerate of Industries and Commerce and the District Industries Centres. It reimburses what an MSME paid consultancy and certification agencies towards acquiring a quality certification.

According to the MSME Department's guidelines on msmeonline.tn.gov.in, the reimbursement is subject to a ceiling of:

• Rs 2,00,000 for a national level certification, and
• Rs 10,00,000 for an international level certification.

The certifications named in the guidelines include ISO 9000, ISO 14001, ISO 22000, HACCP, GHP, GMP, BIS certification, ZED rating and other international quality certifications recognised in India by a competent authority.

The commercial logic is straightforward. A small manufacturer in Tamil Nadu who wants to sell to a large OEM, an exporter, a hospital chain or a government buyer is asked for a certification before the first order is placed. The certification costs money before it earns anything, and the cost falls on the enterprise least able to bear it. This incentive removes that upfront barrier after the fact.

The department reports that in 2020-21, approximately Rs 60.35 lakh was distributed to 92 MSMEs across Tamil Nadu under this component. Those figures tell a useful story: the average settlement was around Rs 65,000, well below the Rs 2 lakh national ceiling, because most claims are for a single ISO certification rather than an international accreditation.

Who is eligible for the quality certification reimbursement?

You can apply if:

• Your enterprise holds a valid Udyam Registration as a micro, small or medium enterprise in Tamil Nadu.
• You have actually obtained a recognised quality certification, ISO 9000, ISO 14001, ISO 22000, HACCP, GHP, GMP, BIS, ZED rating or an equivalent international certification recognised in India by a competent authority.
• The certification is relevant to your business process or product, and its scope covers what your enterprise actually does.
• You paid consultancy and certification charges and can evidence them with invoices in the enterprise's name and matching bank payments.

You are not eligible if:

• You have not yet obtained the certificate. An enterprise part-way through a certification exercise cannot apply; the claim follows the certificate.
• The certifying body is not recognised in India by a competent authority. A certificate bought from an unaccredited issuer will not support a claim.
• Your enterprise is not registered under Udyam.
• The invoices are in a personal name, in the name of a sister concern, or paid in cash without a bank trail.
• The scope of the certificate does not match the enterprise's activity, for example a food safety certification claimed by a unit that does not handle food.

Unlike the capital subsidy and the LTPT subsidy, which are confined to manufacturing, this incentive is framed around encouraging MSMEs to obtain quality certifications for processes and products, so a service enterprise with a relevant certification is also considered. Confirm with the District Industries Centre before incurring cost.

What documents are required?

How to apply for quality certification reimbursement

1. Complete the certification first. Engage a consultancy if needed, undergo the audit, and obtain the certificate in the enterprise's own name with a scope that matches your activity.
2. Collect the invoices and payment evidence from both the consultancy agency and the certification body. Insist that invoices are raised on the enterprise, with GST details, and pay by bank transfer so the trail is complete.
3. Register or log in on msmeonline.tn.gov.in and open the quality certification incentive application.
4. File the claim, entering the certification standard, the certifying body, the date of certification and the amounts paid, and declaring whether the certification is national or international level, since that decides the ceiling.
5. Upload the certificate, the invoices, the payment proofs and the Udyam registration, and submit.
6. Support the verification by the General Manager, District Industries Centre, or the Regional Joint Director, Chennai, who checks the authenticity of the certificate and the payments.
7. Track the claim on the portal and answer queries promptly.

How much is actually reimbursed?

The reimbursement is of the charges actually paid, capped at Rs 2,00,000 for a national certification and Rs 10,00,000 for an international one. An enterprise that spent Rs 80,000 on an ISO 9001 certification receives up to Rs 80,000 and not Rs 2,00,000; the ceiling is a cap, not an entitlement.

Two practical points follow:

• Keep consultancy and certification invoices separate and itemised. Bundled invoices covering training, documentation, software and unrelated services make it harder for the verifying officer to allow the full amount.
• Do not inflate the invoice. Verification includes checking the certifying body's standard fee structure, and an outlier invoice draws scrutiny that delays the whole claim.

How to check the status of your claim

1. Log in to msmeonline.tn.gov.in and open the status screen for the quality certification incentive.
2. Contact the General Manager, District Industries Centre for your district, who holds the file during verification. In Chennai, contact the Regional Joint Director.
3. Escalate to the Commissionerate of Industries and Commerce if the claim has been verified but not settled for an extended period.

Why claims get rejected or reduced

• Certificate not yet issued at the time of claim.
• Unrecognised certifying body, so the certification is not one recognised in India by a competent authority.
• Invoices in the wrong name, or cash payments with no bank trail.
• Scope mismatch between the certificate and the enterprise's actual activity.
• National certification claimed at the international ceiling, which is corrected to Rs 2,00,000 rather than rejected.
• Duplicate claim for the same certificate under another incentive.
• Udyam registration lapsed or in a different entity name from the invoices.

Other Tamil Nadu MSME incentives to claim alongside

• Capital Subsidy to 25% of eligible plant and machinery up to Rs 150 lakh, claimed within one year of commencement of commercial production.
• Low Tension Power Tariff (LTPT) Subsidy — 20% of energy charges for 36 months, with a three-month application window.
• Subsidy for Asset Creation for Intellectual Property to 75% on the cost of patent registration, 50% on trademark or GI registration.
• Promotion of Energy Audit and Conservation of Energy (PEACE): subsidy on energy audit cost and on equipment installed on its recommendation.

Certification and intellectual property together are the two incentives most often used by exporters, since foreign buyers ask for both a quality certificate and evidence of owned brand or process rights.

Help and grievance route

• msmeonline.tn.gov.in, application, claims and status.
• General Manager, District Industries Centre of your district.
• Regional Joint Director (Industries and Commerce), Chennai.
• Commissionerate of Industries and Commerce, Government of Tamil Nadu.

No fee is payable to any individual to file or expedite a reimbursement claim. Consultancies that offer to "arrange" the subsidy for a share of it are charging you for a free application.