Apply for Export Incentives
Export Incentives are a form of economic help that is provided by the government to the forms of industries. The reason why authorities provide these incentives, to keep domestic products competitive in the market. In India, Foreign trade policy (FTP-2015 – 2020) underlines many export incentives.
Types of Export Incentives
The Merchandise Export from India Scheme (MEIS Scheme) is a newly launched scheme launched as a part of the new Foreign Trade Policy and is applicable from 2015 to 2020. This new scheme replaces the 5 similar incentive schemes available earlier under Foreign Trade Policy 2014-2019 and rationalises the incentives given under these schemes. Under the MEIS Scheme – the Govt has allocated more than 22,000 crore per annum for exports.
The new Foreign Trade Policy for 2015-2020 has not only revamped the incentives and rewards for Merchandise Exporters but also for Service Exporters through the SEIS Scheme. In this article, we would mainly be discussing the benefits to exporters under the MEIS Scheme. For benefits to service exporters under the SEIS Scheme, kindly refer this article – 5% Incentives by Govt to Service Exporters under SEIS Scheme.
Commodities for which such incentives under the MEIS Scheme
Procedure for filing Application under MEIS Scheme
The SEIS Scheme or Service Export from India Scheme is an incentive given by the Ministry of Commerce through the Directorate General of Foreign Trade (DGFT) to Service Exporters based in India. This rewad scheme is to promote the export of services from India.
SEIS Scheme was introduced on 1st April 2015 for 5 Years under the Foreign Trade Policy of India 2015-2020. Earlier, this Scheme was named as Served from India Scheme (SFIS Scheme) for Financial Year 2009-2014.
Its main objective is to boost and maximize the export of notified/selected Services from India. Under SEIS Scheme, Exporters of selected Services are entitled to a 3% / 5% / 7% incentive on the Net Foreign exchange earned in the form of Duty Credit Scrips. These SEIS scrips can be used to pay Import duty or can be encashed by selling it to any Importer.
Ineligible categories under the SEIS Scheme
What is the significance of SEIS Scrip?
The government collects a smaller amount of tax for the exported goods to increase the competition in the global market. This provides growth in the Indian Export business. These incentives may change as per the shortage or quantity of the product. Export incentive schemes can be subdivided into the merchandise and service sector.
It has immense benefits such as it increases your sales. Exporting business gives a guaranty to increase sales in the market up to a large extent.
It is always beneficial for the wealth of the nation