Extension in Validity of Duty Credit Scrips

DGFT extends the validity of MEIS/SEIS scrips and provides relaxation in last dates for filing application vide PN 08/2015-2020 dated 01.06.2020 The Foreign Trade Policy (FTP) provides incentives for goods and services bring exported under the Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS). Depending on the nature of services and products, the government gives duty credit scrips to the exporters to boost exports. These scrips can be transferred or used for payment of a number of duties including the basic customs duty. On account of COVID 19, the Indian Government is trying to provide relieves / measures to address the confusion/unrest in the industry. Relaxation has been provided for applicable late cuts for the SEIS/MEIS applications being filed during this intervening period and the validity of scrips that are getting expired between March 1 and June 30, 2020. We would like to provide a brief on some of the important announcement/clarifications by Director General of Foreign Trade (DGFT) vide PN 08/2015-2020 in respect of the validity of Duty Scrips and applications being filed for SEIS / MEIS benefits as under: 1. The validity of Duty Credit Scrips issued between 01.03.2018 to 30.06.2018 has been extended till 30.09.2020. 2. In case of MEIS application attracting late cut as on 01.03.2020, the period from 01.03.2020 to 30.06.2020 shall not be counted. 3. The SEIS application pertaining to the services rendered in FY 2016-17 can be applied up to 30.06.2020 under the late cut slab of 10% and after that, it shall become time-barred. 4. The SEIS application pertaining to the services rendered in FY 2017-18 can be applied up to 30.06.2020 (instead of 31.03.2020) under the late cut slab of 5%. Thereafter 10% rate cut will be applicable to such applications till 31.03.2021. Source:  Public Notice No. 08/2015-2020 dated 01.06.2020 issued by Ministry of Commerce & Industry Last Updated: 12^th June 2020 This article is contributed by:  Vaibhav Matta Senior Manager, Legal  

Tag: MEIS/SEIS