
Government notifies SEIS rates for FY 2019-20
The Government vide Notification No. 29/2015-20 dated September 23, 2021, has notified Appendix 3X, listing out services and available rates under Service Exports from India Scheme (‘SEIS’) for Financial Year (‘FY’) 2019-20. The salient features of this Notification are as follows:
- SEIS rates have been reduced by 2 percent as compared to FY 2018-19 to restore rates effective till September 2017.
- Total entitlement has been capped to 5 crores per exporter.
- Following services have been excluded from list of services that were eligible for SEIS benefit till FY 2018-19:
S. No. |
Nature of Service |
1. |
Business Services |
D. |
Other business services |
c. |
Management consulting service |
d. |
Services related to management consulting |
e. |
Technical testing and analysis services |
9. |
Transport Services |
A. |
Maritime Transport Services |
f. |
Supporting services for maritime transport |
D. |
Services Auxiliary to All Modes of Transport |
a. |
Cargo-handling services |
- Notification has inserted Para 3.10B in Foreign Trade Policy, 2015-20 to provide final cut-off date of December 31, 2021, for filing SEIS claims for FY 2019-20 post which claims will become time-barred.
NITYA Comments: Issuance of eligible services and rates for SEIS benefit for FY 2019-20 has been significantly delayed. Apart from reducing multiple services from its purview, benefit has been reduced by 2%. Similar to MEIS, the Government has capped quantum of benefit for large exporters. The aforesaid measures are regressive considering that exporters are facing tough times due to COVID-19 situation. Also, there is no clarity yet on availability of SEIS benefits for FY 2020-21 and FY 2021-22
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