The commerce ministry has said that the issuance of benefits under different export incentive schemes would be on hold for a temporary period due to changes in the allocation procedure. Exporters avail benefits under schemes like merchandise export from India scheme (MEIS), services export from India scheme (SEIS), Rebate of State Levies (RoSL), and Rebate of State and Central Taxes and Levies (ROSCTL).
Depending on the nature of services and product, the government gives duty credit scrips or certificates to exporters. These scrips can be transferred or used for payment of a number of duties including the basic customs duty. The directorate general of foreign trade (DGFT), under the ministry, said during the period, no fresh applications would be allowed to be submitted at the online IT module of DGFT for these schemes and all submitted applications pending for issuance of scrips would also be on hold. “Members of the trade and industry are informed that issuance of benefits/scrips under MEIS, SEIS, ROSL and ROSCTL schemes would be on hold for a temporary period due to changes in the allocation procedure,” the directorate said in a trade notice to all members of trade and industry, customs authorities and regional authorities of DGFT.
Trade would be suitably informed, once issuance of scrips is opened again, it added. Commenting on the move, Abhishek Jain, Tax Partner, EY, said that this suspension will create uncertainty with respect to these benefits for the exporters and may also impact their cash flows. “The export industry would hope that this suspension is lifted soon and the benefits are made available in full and soon,” he added.
Download Money9 App for the latest updates on Personal Finance.