IndiaFilingsIndiaFilings

Susai

Senior Developer

Published on: Jul 30, 2026

Ceiling on Merchandise Exports from India Scheme (MEIS)

Recently, the Ministry of Commerce and Industry, vide notification no. 30/2015-2020- DGFT dated 1

st September 2020, announced ceiling on Merchandise Exports from India Scheme (shortly known as MEIS). Interestingly, as per the Government officials, 98% of the exporters, claiming MEIS benefits, will remain unaffected by the new ceiling limit prescribed under MEIS. The present article briefly explains the recent announcements undertaken by the Government in MEIS and its effect thereon.

Background of MEIS

The Foreign Trade Policy 2015-2020 introduced the following two schemes-

  1. Merchandise Exports from India Scheme (i.e. MEIS); and
  2. Service Export from India Scheme (i.e. SEIS).

The main objective of MEIS is to encourage the manufacture and export of notified/ certified products/ goods. MEIS aims to offset the infrastructural inefficiencies and associated costs of exporting products/ goods produced in India. The exporters receive ‘duty credit scrips’ in the form of incentives under MEIS.

Recent announcements- Vide notification no. 30/2015-2020- DGFT dated 1st September 2020, two paragraphs, namely, 3.04A and 3.04B, are inserted in the Foreign Trade Policy 2015-2020. The effect of the insertion of the new paragraphs is explained hereunder-
  • The gist of paragraph 3.04A-
    • The total reward allowable to an Importer-exporter code holder (i.e. IEC holder) cannot exceed INR 2 Crores.
    • The ceiling limit of INR 2 Crores per exporter is applicable to the exports made during the period 1st September 2020 to 31st December 2020.
    • The period of 1st September 2020 to 31st December 2020 shall be calculated based on the Let Export Order date of the shipping bills.
    • Following exporters will not be eligible to submit any claim under the MEIS scheme-
      • IEC holder who has not done any export during the period 1st September 2019 to 31st August 2020, or
      • Exporter who has obtained IEC on or after 1st September 2020.
    • The ceiling limit of INR 2 Crores per exporter can be further revised downwards to strictly limit the total prescribed allocation under MEIS to INR 5,000 Crore for the period 1st September 2020 to 31st December 2020.
  • The gist of paragraph 3.04B-
Back to Learn

Frequently Asked Questions

Common questions about Ceiling on Merchandise Exports from India Scheme (MEIS).

The Merchandise Exports from India Scheme (MEIS) is a scheme introduced under the Foreign Trade Policy 2015-2020. Its main objective is to encourage the manufacture and export of notified/certified products/goods from India. MEIS aims to offset the infrastructural inefficiencies and associated costs of exporting products/goods produced in India by providing exporters with 'duty credit scrips' as incentives.
The Ministry of Commerce and Industry has announced a ceiling on the total reward allowable to an Importer-exporter code (IEC) holder under MEIS. The ceiling limit is set at INR 2 Crores per exporter for exports made during the period from 1st September 2020 to 31st December 2020. This limit can be further revised downwards to strictly limit the total prescribed allocation under MEIS to INR 5,000 Crore for the same period.
Only those IEC holders who have done exports during the period from 1st September 2019 to 31st August 2020 will be eligible to submit claims under MEIS. Exporters who have obtained their IEC on or after 1st September 2020 will not be eligible to claim MEIS benefits.
The ceiling limit of INR 2 Crores per exporter is applicable to the exports made during the period from 1st September 2020 to 31st December 2020. This period will be calculated based on the Let Export Order date of the shipping bills.
According to government officials, the new ceiling limit prescribed under MEIS will not affect 98% of the exporters claiming MEIS benefits. The announcements aim to regulate the total incentives disbursed under MEIS while still supporting the majority of exporters.
Yes, the notification states that the ceiling limit of INR 2 Crores per exporter can be further revised downwards to strictly limit the total prescribed allocation under MEIS to INR 5,000 Crore for the period from 1st September 2020 to 31st December 2020.
MEIS aims to offset the infrastructural inefficiencies and associated costs of exporting products/goods produced in India. By providing exporters with 'duty credit scrips' as incentives, MEIS encourages the manufacture and export of notified/certified products/goods from India.
The Let Export Order date of the shipping bills will be used to calculate the period from 1st September 2020 to 31st December 2020, during which the ceiling limit of INR 2 Crores per exporter is applicable.
Yes, the Foreign Trade Policy 2015-2020 also introduced the Service Export from India Scheme (SEIS), aimed at encouraging service exports from India.
The purpose of introducing a ceiling limit on MEIS benefits is to regulate the total incentives disbursed under the scheme while still supporting the majority of exporters. By limiting the maximum reward per exporter, the government can control the overall allocation for MEIS within a prescribed limit.