What you Need to Know About the Revised Deadline for Filing MEIS/SEIS Claims at Online IT Module
On 16th September 2021, the Director-General of Foreign Trade(DGFT) office has issued a notice directed towards the exporters being benefitted under the scrip-based schemes like Merchandise Export from India Scheme(MEIS), Service Exports from India Scheme(SEIS), Rebate of State Levies(ROSL), or the Rebate of State and Central Taxes and Levies(ROSCTL) to file their claim at the Online IT Module released by The Government of India with about Rs.56,000 Crore for the issue of scrips under the FTP schemes in September 2021.
The revised last date for filing the online application in the IT portal is December 31, 2021, which has already been started. It should be taken into account that the facility of filing the claims at a later date with the late cut provision is also not being considered by the DGFT.
Exporters and Export Promotion Councils were also requested to take note that after 31st December 2021, the Online IT System will not be operational and applications or claims will not be entertained following the deadline. The Promotion Council, SEPC/FIEO, and organizations with service exporters were also asked to spread the information widely within their constituents to encourage the filing of SEIS claims at an early date before the deadline.
In 2019, the DGFT notified about the physical copies of MEIS and SEIS duty scrips being phased out and replaced by electronic transfers. As an exporter, you are expected to register your scrips with the customs department. The CHAs are to authorize the registration for you.
What is a Duty Credit Scrip (DCS)?
Duty Credit Scrip is a promotion benefit for exporters in India offered by the Central Government to increase the inflow of foreign exchange to India.
DCS can be used to pay tax liabilities, custom duties, safeguard duties, compensation cess, GST, and much more. The maximum validity of DCS is of 24 months from the date of issue. An exporter is eligible to get a scrip of 2% to 5% depending on the EXIM Policy.
Under MIES Scheme, DCS is to be applied:
- within 12 months from the date of the Let Export Order.
- within 3 months from the day EDI bills are uploaded.
- with a maximum number of 50 shipping bills.
Under SEIS Scheme,
- DCS is to be applied within 12 months from the end of the referred financial period.
- DCS is to be applied With a chosen port of registration mentioned in the application.
- The government will give a 3-5% incentive to all Service Providers from India to companies outside India.
Documents Required to Apply for SEIS/MEIS Incentives:
- Foreign inwards remittance certificate
- Import/Export Code
- CA Certificate
- Registration and membership certificate
- Copy of invoice
- Copy of foreign exchange earned.
- List of Directors (If applicable)
How to Sell Duty Credit Scrips?
When the exporter has no use of the scrips, they can sell their Duty Credit Scrips obtained by MEIS, SEIS, ROSL, ROSCTL schemes to interested buyers.
There are no organized markets for the sales, but selling DCS is not illegal. DCS is generally sold at a discount, favoring both buyers and exporters.
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