On 15 May 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) issued clarification circulars on the PLI Scheme 2. 0 for textiles, extending capex verification deadlines and relaxing certain audit submission windows for FY2024–25 performers. This move affects over 1,200 enrolled companies across yarn, fabric and apparel segments.
Manufacturers operating under the scheme must now recalibrate their compliance calendars and ensure audited statements align with the new timelines.
Market signals
DPIIT extended the capex verification deadline to 30 June 2026 for participants who missed the initial March cut-off. This applies to incremental fixed-asset creation; third-party certification is now mandatory.
Companies with FY2024–25 turnovers above ₹50 crore must now submit audited statements by 31 July 2026 (extended from 30 June). Smaller units face no change but must pre-register with DGFT systems.
Participants failing to meet minimum domestic value-addition thresholds (45% for apparel, 55% for MMF textiles) in FY2025–26 now face proportional incentive recovery. Non-compliance triggers GST demand notices and potential delisting.
The extension is a relief for cash-strapped SMEs, but it sharpens audit and documentation scrutiny. Companies must ensure capex bills are GST-compliant and tagged to DGFT-registered projects; DPIIT now cross-references GST ITC claims against PLI capex claims, flagging mismatches. Vinayakam Consultants helps textile clients conduct rapid capex audits, map fixed-asset schedules to PLI eligibility, and prepare auditor-certified capex statements within the new 30 June window. We also counsel on DVA reconciliation and guide GST input alignment to avoid recovery notices.
Your action checklist
- Obtain independent auditor certification of FY2024–25 capex by 20 June 2026; cross-check GST invoices against fixed-asset register to avoid ITC mismatch flags.
- Register or update capex details on DGFT's PLI portal (pli.gov.in) and submit third-party capex verification by 30 June 2026; retain all supporting invoices and bank statements.
- Calculate and document domestic value-addition (DVA) for FY2025–26 YTD; ensure purchase vouchers from DGFT-notified domestic suppliers are tagged and reconcile against production records.
- Engage statutory auditor to prepare FY2024–25 audited financial statements with a specific PLI compliance certification; file with company secretary by 15 July 2026 for timely DGFT submission by 31 July.