DISCLAIMER: 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.
On 1 June 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) issued clarifications on PLI (Production-Linked Incentive) Scheme verification procedures for automotive and auto-component manufacturers. The updated guidelines require manufacturers to re-submit performance-linked claims under revised audit protocols, effective immediately. This change affects all firms claiming incentives in FY 2025–26 and forward. Understanding the new submission timelines and third-party auditor requirements is critical to avoid claim rejection or payment delays.
Market signals
DPIIT now requires all PLI claims above ₹50 lakh to be certified by government-empanelled auditors only—not general chartered accountants. Manufacturers must identify and engage an auditor from the approved list before filing revised claims by 30 June 2026.
The June notification requires manufacturers to reconcile production figures against GST returns and statutory books for FY 2025–26. Discrepancies over 5% trigger mandatory re-audit and extended scrutiny, potentially delaying incentive payout by 2–3 months.
All supporting invoices, purchase orders and dispatch documents must now be uploaded via the PLI portal in searchable digital format. Manual or scanned documents without OCR-readable metadata will not be accepted, effective immediately.
The June 2026 DPIIT clarification introduces stricter verification standards for PLI claims. Manufacturers must ensure their FY 2025–26 and FY 2026–27 claims are audited by government-empanelled auditors and reconciled against GST records within the stipulated window. Non-compliance risks forfeiture of incentives and potential recovery demands on previously disbursed amounts under the scheme's anti-fraud provisions. Vinayakam Consultants helps engineering and auto-component manufacturers navigate PLI documentation, identify eligible empanelled auditors, reconcile statutory records, and prepare claims to meet the new verification standards—reducing the risk of rejection and accelerating payout timelines.
Your action checklist
- Obtain the updated list of government-empanelled auditors from the PLI portal (dpiit.gov.in) and confirm your firm's audit engagement by 25 June 2026.
- Reconcile FY 2025–26 production and export figures against GST outward supplies and statutory books; document all variances and supporting reconciliation workings.
- Digitise all claim-supporting documents (invoices, POs, despatch challan, testing certificates) and upload in OCR-compliant format via the PLI portal by 30 June 2026.
- Engage Vinayakam Consultants to conduct a pre-audit dry-run of your claim package against the revised checklist to identify gaps before formal submission.
Frequently asked questions
From 1 June 2026, DPIIT introduced stricter PLI scheme claims verification requiring government-empanelled auditors for claims above ₹50 lakh, digital document submission via portal, and production data reconciliation against GST returns.
Manufacturers must identify a government-empanelled auditor and resubmit revised PLI scheme claims by 30 June 2026 to comply with updated DPIIT guidelines.
Discrepancies over 5% trigger mandatory re-audit and extended scrutiny, potentially delaying incentive payouts by 2–3 months under the new PLI scheme claims verification rules.