Service Exports from India Scheme - Withdrawal of Additional 2% SEIS rates with effect from 1st August 2019
DEL/285/2019/ALLM/26 3rd August 2019
To All Members,
Sub: Service Exports from India Scheme - Withdrawal of Additional 2% SEIS rates with effect from 1st August 2019
As you are aware, under the Foreign Trade Policy 2015-2020, some incentives were announced in the form of Duty Credit Scrip by the Ministry of Commerce for the Services Sector including tour operators, travel agents, hotels, etc. under Service Export from India Scheme (SEIS). The rate of reward under SEIS for the tour operators was 5% of net foreign exchange and this was initially valid till 31st March 2017.
The Ministry of Commerce and Industry, Government of India vide Public Notice no. 45/2015-2020 dated 5th December 2017 extended the validity of SEIS upto 31st March 2018. The rate of reward under SEIS was allowed at 7% of net foreign exchange earning from 01.11.2017 to 31.03.2018 as against 5% rate upto 31.10.2017.
The list of services / rate of reward under SEIS was subject to review with effect from 01 April 2018. The Govt. continued the enhanced reward rate of 7% upto 31.03.2019 and it continued even thereafter. In the meeting held by the Revenue Secretary with Commerce Secretary and DGFT on 10.06.2019, it was decided to continue the additional 2% SEIS reward for a period of one or two months as a transitory measures in the interest of exporters.
It is to inform all of you that the Ministry of Finance / Ministry of Commerce, Government of India has withdrawn the additional 2 % SEIS rate for all service providers including tour operators w.e.f. 1st August 2019. The basic rate of 5% SEIS will continue to apply after 01.08.2019. In simple words, the rate of reward under SEIS has been slashed from 7% to 5% w.e.f. August, 2019.
Members are requested to please make a note of the above.
However, the Association will continue to take up the matter with the Ministry of Finance, Ministry of Commerce and the Ministry of Tourism for special relief to our industry.
With best regards,