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Service Exports from India Scheme

Part of: Prelims and GS – II- Governance; GS-III- Economy

Context: Bringing some relief to services exporters, the government has notified the benefits to be given for exports undertaken in 2019-20 under the Service Exports from India Scheme (SEIS). 

• It has capped entitlements at ₹5 crore per exporter.
• The notification of benefits will ease the credit burden of firms, especially for players in the travel, tourism and hospitality sectors that have been hit hardest in the pandemic. 

About the Service Exports from India Scheme (SEIS)

• Service Exports from India Scheme (SEIS) aims to promote export of services from India by providing duty scrip credit for eligible exports.
  • A Duty Credit Scrip is like a credit certificate issued by the Director General of Foreign Trade (DGFT) and can be used to pay various duties/taxes to the Central Govt. 
• Service providers of eligible services shall be entitled to duty credit scrip at notified rates on the net foreign exchange earned. 
• Duty credit scrips can be used for the payment of custom duties, excise duties, GST on procurement of services etc.
• Further, the SEIS scheme has given relaxation to the actual user condition and duty credit scrips and goods imported using duty credit scrips are freely transferable. Duty credit scrip would be valid for a period of 18 months from the date of issue.
• The scheme is implemented and administrated by the Government’s Ministry of Commerce and Industry, in association with the Directorate General of Foreign Trade (DGFT).

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