Time limit for filing applications for duty credit scrips and validity period of such scrips

by | Sep 17, 2021 | Insight

We apprised you that the Central Government via Press Release dated September 9, 2021, announced fund allocation for disbursal of pending export incentives to exporters under various Export Promotion Schemes. Press Release also indicated that the last date of filing applications under various Export Incentive Schemes will be December 31, 2021.

The aforesaid time limit has been given legal sanction vide Notification No. 26/2015-20 dated September 16, 2021 (‘Notification’) issued by Directorate General of Foreign Trade (‘DGFT’). DGFT has inserted Para 3.13A in Foreign Trade Policy, 2015-20 (‘FTP’) and notified final cut-off date of December 31, 2021, post which all claims will become time barred.

Time limits for various export incentives for different Financial Years (FYs) along with applicable late cuts are tabulated below:

Sl. No.

Export Incentive

Period of export

Last date for submission of application

Applicable Late Cut

(% of entitlement)

1

MEIS

July 2018 to March 2019

December 31, 2021

10%

April 2019 to March 2020

Nil

April 2020 to December 2020

Nil

2

SEIS

April 2018 to March 2019

5%

April 2019 to March 2020

Nil

3

RoSL

Up to March 6, 2019 (for which claims not disbursed till date)

Nil

4

RoSCTL

March 7, 2019, to December 31, 2020

Nil

5

Additional ad hoc incentive (2%) under Para 3.25 of the FTP

January 2020 to March 2020

 

The Notification has also inserted Para 3.13B in FTP as per which credit scrips issued post September 16, 2021, will be valid only for 12 months from their issuance.

NITYA Comments: Exporters are advised to timely file export incentive applications before cut-off date to ensure smooth processing and timely issuance of export incentive scrips. 

It is pertinent to note that while last date of filing of SEIS for FY 2019-20 is just 3 months away, eligible services & rates are yet to be notified nor DGFT portal is accepting such applications. The Government is expected to shortly issue such Notification.

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