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Govt. Suspends Issuing Export Benefits under key Schemes

The government has put on hold the issuance of benefits under various export promotion schemes, due to changes in the allocation procedure.

The Directorate General of Foreign Trade (DGFT) said on Thursday that benefits under the Merchandise Exports from India Scheme, Service Export from India Scheme, Rebate of state and Central Taxes and Levies and Rebate of state Levies have been “put on hold for a temporary period.”

“During this 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,” the DGFT said in a trade notice.

It said that trade would be informed once issuance is reopened.

“This suspension will create uncertainty with respect to these benefits for exporters and may also impact their cash flows. The export industry will hope that this suspension is lifted soon, and the benefits are made available in full,” said Abhishek Jain, Tax Partner, EY

The suspension comes at a time when the government has yet to notify the benefit rates under the Remission of Duties and Taxes on Export Products (RODTEP) scheme, which was put in place in January.

Export bodies have been asking for release of funds for MEIS clarity on SEIS benefits and continuance of seam less refund od IGST to ease fund blockage.

Merchandise exports grew a record $95 billion during April-June.

India aims to clock $400 billion in export in the ongoing fiscal year. S-ET

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