Testing Fee Reimbursement Scheme

If you are a new MSME owner, you know that maintaining product quality is crucial for growth and market acceptance. However, the cost of testing your products at authorised labs can be a significant burden, especially when you are just starting out. To help start-ups like yours under National Scheduled Caste & Scheduled Tribe Hub (NSSH) scheme. It has provisions for reimbursement on testing fees charged by various National Accreditation Board for Testing (NABL) or Bureau of Indian Standards (BIS) accredited laboratories across the country to SC/ST MSEs. It helps in achieving compliance, in building credibility, and in accessing broader markets without worrying about the testing expenses.

What is the Testing Fee Reimbursement Scheme?

The Testing Fee Reimbursement Scheme was launched by the Indian government to provide financial relief to MSMEs for costs incurred during product testing at approved laboratories. The scheme encourages you to get your products tested so you can meet statutory and market-driven quality norms, thereby improving your product’s acceptance in both domestic and export markets.

Objectives of the Testing Fee Reimbursement Scheme

• Promote quality manufacturing in MSMEs.
• Encourage MSMEs to comply with both Indian and international standards.
• Reduce the financial load of product testing.
• Support MSMEs in enhancing market credibility.
• Foster competitiveness and innovation in Indian MSMEs.

Key Features of the Testing Fee Reimbursement Scheme

• Available for MSMEs registered under Udyam portal.
• Provides reimbursement of testing and certification costs from NABL, BIS, Govt./PSU labs, etc.
• Covers raw materials, semi-finished and finished products.
• Claims must be made within 1 year of expenditure.
• Can be availed multiple times in a year, subject to a cap.
• SC/ST MSEs get up to 80% or ₹1,00,000 (excl. GST/taxes) reimbursement.
• It is a grant (not a loan), so no interest applies.
• Benefits generally apply once per year per MSME unit.

Financial Assistance Offered Under the MSME Testing Fee Reimbursement

The scheme reimburses testing and certification charges of SC-ST MSEs, subject to a maximum ceiling. Here is a summary in table form:

Eligibility Criteria for the Testing Fee Reimbursement Scheme

Eligibility

You are eligible if:

• You own an MSME registered with Udyam Registration or any other valid registration platform recognized by the MSME ministry.
• You should belong to Scheduled Caste (SC) or Scheduled Tribe (ST)
• Your unit is engaged in manufacturing or production.
• Testing is carried out in NABL/BIS/other Government recognised laboratories.
• You have not availed similar benefit under any other scheme for the same expenditure.

Non-eligibility
You are not eligible if:

• Your MSME is not registered on the Udyam portal.
• You are in the service sector not involved with manufacturing or production.
• You submit forged or false documents.
• Your unit is availing similar reimbursement simultaneously from another government scheme.

Documents Required for Testing Fee Reimbursement Scheme

• Udyam Registration Certificate 
• Laboratory test report and invoice/bill
• Proof of payment made to the laboratory
• Copy of GST registration (if applicable)
• Cancelled cheque of the MSME’s bank account
• Declaration of not availing this benefit under another scheme

How to Apply for the Testing Fee Reimbursement Scheme

Step 1: Register your MSME on the Udyam Registration portal (if not already registered).

Step 2: Conduct the product testing at a recognised laboratory accredited by NABL, BIS or other authorised bodies.

Step 3: Collect all necessary documents such as testing reports, invoices, and payment receipts from the laboratory.

Step 4: Visit the official scheme portal.

Step 5: Fill in the online application form carefully with accurate details.

Step 6: Upload all the required documents such as Udyam registration certificate, lab reports, payment proofs, and cancelled cheque.

Step 7: Submit the completed application online for review by the concerned authorities.

Step 8: Wait for communication regarding the status of your application and reimbursement approval.

Benefits of the Testing Fee Reimbursement Scheme

• Reimbursement of Fee
  SC/ST MSEs can receive reimbursement of 80% ₹1,00,000/- (excluding GST and other applicable taxes), whichever is lower, for testing fees paid for govt labs & certifications. It covers testing of raw materials, semi-finished products, and finished products
• Eases Financial Pressure
  You get significant relief from the burden of testing charges, freeing up capital for other business needs.
• Promotes Quality Compliance
  You are encouraged to maintain higher product standards, boosting acceptance in markets that demand certified quality.
• Increases Market Access
  Compliance with national and international norms opens avenues for B2B partnerships and export opportunities.

Real-World Examples of Testing Fee Reimbursement Scheme

• Small electronic parts manufacturer claiming reimbursement for BIS certification.
• Textile MSME exporting to Europe availing support for international lab testing.
• Food processing unit getting FSSAI product quality tested and reimbursed.

Related Government Support Plans for MSME Testing Fee Reimbursement

Final Words

Availing the Testing Fee Reimbursement Scheme can pave the way for you to focus your energies on building quality products and accessing new markets, while the government shares your testing costs burden. Apply today to strengthen your MSME’s growth prospects.