This article is for informational purposes only and does not constitute legal, tax, financial, or investment advice. Laws and regulations vary by jurisdiction and change frequently. Always consult a qualified professional before making any decision. As of June 2026, manufacturers enrolled in Production Linked Incentive (PLI) Scheme Phase 2 are now entering critical compliance windows.
The Department for Promotion of Industry and Internal Trade (DPIIT) has tightened quarterly verification and capex certification deadlines, with key submission dates falling between June and August 2026. Firms that miss these windows risk provisional benefit suspension or ineligibility for the next tranche. This article outlines the specific timelines, declaration requirements and audit checkpoints now live.
Market signals
DPIIT has mandated that Phase 2 applicants file certified capex statements by 30 June 2026. Third-party auditors must verify asset procurement, installation and commission dates against bank statements and GST invoices. Many mid-sized manufacturers are now engaging auditors to reconcile records — delays here will trigger automatic ineligibility notices.
Phase 2 participants must demonstrate production capacity increase of at least 15% above the FY2024–25 baseline by end-Q2 FY2026–27 (September 2026). DPIIT sample audits are now underway; manufacturers without production data uploaded to the PLI portal by 15 July face a compliance gap notice.
Schemes covering textiles, electronics and auto components now require participants to export a minimum 25% of output by end of Phase 2. The Directorate General of Foreign Trade (DGFT) has begun cross-referencing PLI registration with actual export declaration records. Firms missing this threshold will see benefit payouts clawed back.
Phase 2 compliance is now enforcement-live. The Ministry of Commerce & Industry is cross-checking PLI declarations against GST invoices, bank reconciliations and DGFT export data via automated matching. Any mismatch — capex date discrepancies, production shortfalls, or missing export records — typically triggers provisional benefit hold and a 90-day remediation notice. Vinayakam Consultants works with manufacturers to conduct pre-audit capex reconciliation, map production against baseline claims, and align GST and bank records before DPIIT notices arrive. We also assist with third-party auditor selection and portal filing protocols to avoid missed deadlines.
Your action checklist
- Obtain third-party audit confirmation of all capex incurred to date; cross-reference invoices, bank payments and asset tagging against DPIIT baseline claim by 25 June 2026.
- Upload certified production data (units, dates, facility-wise breakdown) to the PLI portal by 15 July 2026; reconcile against FY2024–25 baseline and 15% ramp-up target.
- Verify export declarations filed with DGFT (e-sanchit/IEC portal) match PLI production claims; flag any shortfall versus 25% export threshold and file revised forecasts if needed.
- Engage a qualified auditor (CA or cost accountant) to sign off on capex, production and export reconciliation; retain all supporting GST invoices, bank statements and packing lists for 90 days post-submission.
Frequently asked questions
Key deadlines fall between June and August 2026, including capex filing by 30 June, production data uploads by 15 July, and production capacity verification by September 2026.
Missing these windows risks provisional benefit suspension, automatic ineligibility notices, or exclusion from the next incentive tranche.
File certified capex statements with third-party auditor verification of asset procurement, installation dates, bank statements, and GST invoices.