SEIS Export Incentives​

Under the Foreign Trade Policy, the ‘Exports from India Scheme’ was introduced with the objective to provide rewards to the exporters to offset the infrastructural inefficiencies and associated costs.

Following are the two schemes for export of Merchandise and Services –

1. Merchandise Exports from India Scheme (MEIS).
2. Service Exports from India Scheme (SEIS).

Chapter 3 of the Foreign Trade Policy 2015-2020 contains provisions relating to the ‘Exports from India Scheme’.

Service provider of only those services which are notified in Appendix 3D and Appendix 3E, located in India, shall be rewarded under SEIS.

Appendix 3D: List of services eligible under Services Export from India Scheme along with rate of Incentives.

Appendix 3E: List of services where payment has been received in Indian rupees which can be treated as receipts in deemed foreign exhange as per guideline of RBI

In order to get eligible for SEIS, the services need to be rendered in the manner provided at Para 9.51(i) and Para 9.51(ii) of the Foreign Trade Policy 2015-2020 and the same is provided below –

Para 9.51(i) – Supply of a service from India to any other country (Mode1 – Cross border trade)

Para 9.51(ii) – Supply of a service from India to service consumer of any other country in India (Mode2 – Consumption abroad).

The service provider needs to have a minimum ‘net foreign exchange earnings’ (explained below) of US$ 15,000 in the year of rendering service in order to get eligible for Duty Credit Scrip.

As per para 9.10 of the Handbook of Procedures 2015-2020, on receipt of SEIS application, the department needs to disposed it off in 3 working days. Only in case of any deficiencies / discrepancies in the file, the longer processing time is allowed.

In SEIS, the benefit is available to the eligible service provider of the notified service in the form of ‘Duty Credit Scrips’. The issuance of ‘Duty Credit Scrips’ would be based on the notified rates listed in Appendix 3D on the net foreign exchange earnings. The said notified rates vary from 5% to 7% on the notified services.

An online application needs to be filed on the DGFT server and all the relevant fields of information need to be entered in the SEIS ECOM Module.

Application form ANF 3B and Annexure to ANF 3B are available online.

It must be noted that, vide public notice no. 15/2015-2020 dated 28^th June, 2018, new ANF 3B has been made effective.