The Government has put on hold issuing benefits under various export promotion schemes due to changes in the allocation procedure.
The suspension comes amidst the Government yet to notify the benefits rates under the Remission of Duties and Taxes on Export Products (RoDTEP) scheme that was put in place in January.
The Directorate General of Foreign Trade (DGFT) said that benefits under the Merchandise Exports from India Scheme, Service Export from India Scheme, Rebate of State and Central Taxes and Levies, and Rebate of State Levies have been ‘put on hold for a temporary period’.
Experts believe that this suspension will create uncertainty with respect to these benefits for the exporters and may also impact their cash flows.
Export bodies have been asking for release of the funds for MEIS, clarity on SEIS benefits and continuance of seamless refund of IGST to ease fund blockage.
“During this period, no fresh applications would be allowed to be submitted at the online IT module of DGFT for these schemes and all submitted applications pending for issuance of scrips would also be on hold,” the DGFT notice reads.
The trade would be informed once issuance is opened again.