Government notifies SEIS rates for FY 2019-20

by | Sep 24, 2021 | Insight

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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