Due Date and Validity Period For Scrip Based FTP Scheme
Due Date and Validity Period For Scrip-Based FTP Scheme
The Director-General of Foreign Trade (DGFT) has notified the 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 31 December 2021 is the revised last date for making online applications under FTP Schemes.
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Synopsis of DGFT Notification
As mentioned above, the last date for submitting online applications for scrip-based schemes was revised to 31 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 would not be operational, and no application/claim under the mentioned schemes could 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 31 December 2021
In September 2021, the Government released about Rs.56000 crore for the issue of duty credit scrip under the Foreign Trade Policy scheme. Filing online applications and subsequent cases of duty credit scrip have also started. In this regard, DGFT released Notification No.26 on 16.09.2021, wherein 31 December 2021 has been stipulated as the revised last date for Filing claims 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:
- Merchandise Exports from India Scheme (MEIS)
- Service Export from India Scheme (SEIS)
- Advance Authorization Scheme
- Duty-Free Import Authorization Scheme
- Export Promotion Capital Goods (EPCG) Scheme
- Export Oriented Unit (EOU), Electronic Hardware Technology Park (EHTP), Software Technology Park (STP), or Bio-Technology Park (BTP)
- Deemed Export Scheme
- Rebate of State and Central Levies and Taxes (RoSCTL)
- Refund of State Levies (RoSL) – for the textile sector
Duty Credit scrip is issued under these Scrip Based FTP Schemes can be used to pay various duties/taxes to the Central Government. This script is given to exporters as an incentive.
The Due Date for Submission of Applications
The Government has notified 31 December 2021 as the due date for various scrip-based FTP schemes captured below:
|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|
|Refund 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) was 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 (up to 31.12.2020)||Nil|
|3||SEIS||FY 2018-19||5 %|
|5||ROSCTL||07.03.2019 to 31.12.2020||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 later.
Validity of Scrips issued under FTP Scheme
The Duty Credit Scrips have a validity period and can be used for any of the purposes mentioned above 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 Chapters 3 and 4 of FTP 2015-20, as well as the earlier FTPs.
The official notification about the Due Date and Validity Period For Scrip Based FTP Scheme is attached below for reference:
Trade Notice 22 dated 02 Nov 2021_compressed