Due Date and Validity Period For Scrip Based FTP Scheme

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Due Date and Validity Period For Scrip Based FTP Scheme

The Director-General of Foreign Trade (DGFT) has notified  Due Date And Validity Period for Scrip Based Foreign Trade Policy (FTP) Schemes vide a Trade Notice 22/2021-2022 dated 02.11.2021. With this notification, DGFT announced that 31st December 2021 is the revised last date for making online applications under FTP Schemes.

Synopsis of DGFT Notification

As mentioned above, the last date for submitting online applications for scrip based schemes was revised to 31st December 2021 for the following FTP schemes:

  • Merchandise Exports from India Scheme (MEIS)
  • Service Exports from India Scheme (SEIS)
  • Rebate of State Levies Scheme (ROSL)
  • The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme

DFGT also notified that after 31.12.2021, the online IT system will not be operational and no application/claim under the mentioned schemes can thereafter be submitted.

DGFT also notified that the facility for filing applications, with a late cut provision, would also not be available all applications will get time-barred after 31st December 2021

Earlier Announcement

In September 2021, the Government has released about Rs.56000 crore for the issue of duty credit scrip under the Foreign Trade Policy scheme. Filing the online applications and subsequent issue of duty credit scrip has also started. In this regard, DGFT earlier released a Notification No.26 on 16.09.2021, wherein 31st December 2021 has been stipulated as the revised last date for Filing Claim under Scrip based FTP Schemes

Scrip Based FTP Scheme

To encourage and incentivize exports, the Government of India has consistently formulated Scrip Based schemes under the Foreign Trade Policy. These schemes are aimed at diversifying Indian Exports and creating a stable policy environment. Some of the schemes notified under the Foreign Trade Policy 2015-2020 is listed as follows:

Duty Credit scrip is issued under these Scrip Based FTP Schemes can be used to pay various duties/taxes to the Central Government. This scrip is issued to exporters as an incentive.

The Due Date for Submission of Applications

The government has notified 31st December 2021 as the due date for various scrip based FTP schemes captured below:

Scheme Period
Merchandise Exports from India Scheme (MEIS) For exports made in the period from 1 July 2018 to 31 December 2020
Service Exports from India Scheme (SEIS) For service exports rendered in financial years 2018-19 and 2019-20
2% additional ad hoc incentive (under para 3.25 of FTP – mobile phone exports) For exports made in the period 1 January 2020 to 31 March 2020
Rebate of State and Central Levies and Taxes (RoSCTL) – for the textile sector For exports made in the period 7 March 2019 to 31 December 2020
Rebate of State Levies (RoSL) – for the textile sector For exports made up to 6 March 2019 for which claims have not yet been disbursed under the scrip mechanism

For 2 % additional ad hoc incentive (under para 3.25 of the Foreign Trade Policy — for exports made in the period 01.01.2020 to 31.03.2020) also notified.

Revised Late-cut Provisions

The new late cut provisions for applications submitted up to 31 December 2021 have also been notified as follows:

Sl no. Scheme Period of Exports (Let Export Date in the period) / Services rendered in the period Late Cut (as % of entitlement under theScheme)
1 MEIS FY 2018-19      (01.07.2018 to 31.03.2019) 10%
2 MEIS FY 2019-20 and FY 2020-21 (upto 31.12.2020) Nil
3 SEIS FY 2018-19 5 %
4 SEIS FY 2019-20 Nil
5 ROSCTL 07.03.2019 to 31.12.2020 Nil
6 ROSL Upto 06.03.2019 Nil

After 31 December 2021, no further applications would be allowed to be submitted, and they would become time-barred. Late cut provisions shall also not be available for submitting claims at a later date.

Validity of Scrips issued under FTP Scheme

The Duty Credit Scrips have a validity period and can be used for any of the above-mentioned purposes during the validity period.

The new validity period of a Duty Credit Scrip issued on or after 16 September 2021 shall be 12 months from the date of issue for all scrip-based Schemes under Chapter 3 and Chapter 4 of FTP 2015-20, as well as the earlier FTPs.

The official notification pertaining to the Due Date and Validity Period For Scrip Based FTP Scheme is attached below for reference:

Trade Notice 22 dated 02 Nov 2021_compressed

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Renu is experience content writer specialised in compliances and company rules.