Government provides certain incentives to promote exports, which are directly linked to the value of the exports. The list of goods and services that are eligible for such incentives are defined.
Presently MEIS (Merchandise Export Incentive Scheme) for Goods and SEIS (Service Export Incentive Scheme) for Services are popular. All other schemes in the past have been merged into these two. In addition there are other schemes that helps exporters in their marketing and logistics efforts, some of which are listed below
Rebate of State & Central Taxes and Levies (RoSCTL)
This scheme is re-launched by the Government of India for the Textile Industry. This will ensure that the costs incurred in the form of Central and State Taxes and Levies will be refunded back to the manufacturer to provide boost and growth of textiles exports.
MEIS (Merchandise Export from India Scheme)
Gives a value of 2-20% on FOB from the export of goods from India in the form of a duty credit script. This scheme was applicable from 01.04.2015 to 31.12.2020. The incentive can be claimed within 3 years of export. However, by recent notification, the government has cut down the time to 31.12.2021.
The scripts can only be used for the payment of Basic Customs Duty, Additional Customs Duty specified under Section 3(1), 3(3) and 3(5) of the Customs Tariff Act, Education Cess, Anti-Dumping Duty, Safeguard Duty and Transition Product Specific Safeguard Duty wherever applicable. There are certain terms and conditions attached to this scheme that need to be taken care of on the basis of the exporter profile prior to export.
Transport and Marketing Assistance (TMA):
TMA for some specified Agriculture products which will not only help the exporters to bring down the higher costs of transportation and will also help promote brand recognition for Indian agricultural products in the overseas markets. It is a direct transfer of cash in exporter’s account.
SEIS (Service Export from India Scheme)
Gives a value of 3-7% of the net FE earned from the export of services for eligible services provided in a specific manner in the form of duty credit script. This scheme was applicable from 01.04.2015 to 31.3.2020. For 2019-20 the rates have been announced and the last date for application is 31.12.2021.
The scripts can only be used for the payment of Basic Customs Duty, Additional Customs Duty specified under Section 3(1), 3(3) and 3(5) of the Customs Tariff Act, Education Cess, Anti-Dumping Duty, Safeguard Duty and Transition Product Specific Safeguard Duty wherever applicable. There are certain terms and conditions attached to this scheme that need to be taken care of on the basis of the exporter profile prior to export.
Role of Andees team:
Andees team assist in the identification of the benefits available under the MEIS SEIS scheme. Further team will do documentation required, application preparations, representation and coordination with DGFT, Customs and other concerned Government Departments till the receipt of final scrip.
Later we will assist you in actually realizing the value of the script in cash. For sale, purchase of scrips please contact the Andees team.
As of now, there is no GST applicable on MEIS or SEIS scheme. For more details on GST applicability on MEIS SEIS RoSCTL, please contact Team Andees.
Some of the other benefits that are provided by the Government to promote exports are:
- Grant of Status Holder to large exporters that gives them certain priviledges.
- Market Access Initiatives (for studies, brochures etc.),
- Marketing Development Assistance for participation in trade fairs etc.
- Assistance in Logistics cost for certain export products and by certain state government schemes