The Commerce Ministry said on Thursday that the granting of benefits under various export incentive programs would be suspended for a temporary period due to changes in the award procedure.
Exporters enjoy benefits under schemes such as India’s Merchandise Export Regime (MEIS), India Services Export Regime (SEIS), State Levy Refund (RoSL) and the reimbursement of national and central taxes and levies (ROSCTL).
Depending on the nature of the services and products, the government issues certificates or certificates of credit rights to exporters. These certificates can be transferred or used for the payment of a number of duties including the basic customs duty.
The Directorate-General for Foreign Trade (DGFT), under the ministry, said during the period that no new requests would be allowed to be submitted to the DGFT’s online IT module for these schemes and that all requests submitted in pending issuance of certificates would also be pending.
“Members of trade and industry are informed that the issuance of benefits / certificates under the MEIS, SEIS, ROSL and ROSCTL schemes will be suspended for a temporary period due to changes in the award procedure”, management said in a commercial notice to everyone. members of trade and industry, customs authorities and regional authorities of the DGFT.
Trade would be properly informed once the issuance of certificates was reopened, he added.
Commenting on the decision, Abhishek Jain, Tax Partner, EY, said the suspension would create uncertainty about these benefits for exporters and could impact their cash flow as well.
“The export industry hopes that this suspension will be lifted soon and that the benefits will be available in full and soon,” he added.