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Exporters — Tax, GST & FEMA

MEIS / SEIS Legacy Claims & Dispute Resolution

MEIS / SEIS Legacy

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Regulatory Framework

The Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS), both introduced under FTP 2015-20, are discontinued and are NOT available for current shipments or services — this page addresses legacy claims and disputes only, not an active incentive.

MEIS was withdrawn with effect from 1 January 2021, having been found inconsistent with India's WTO subsidy commitments, and was replaced for goods exports by the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, administered under FTP 2023 Chapter 4 (Appendix 4R/4RE) for exports made on or after 1 January 2021.

SEIS benefits ceased for services rendered on or after 1 April 2020, and FTP 2023 did not revive or replace it — there is no direct successor scheme for service exporters. The residual government support available to service exporters is limited to GST zero-rating (with input tax credit refund) under the IGST Act, 2017, and scheme-neutral mechanisms such as EPCG.

Any MEIS or SEIS scrip issued for eligible shipping-bill or services periods before these cut-off dates, but not yet utilised, or under DGFT dispute (e.g., shortfall in scrip issuance, denial on technical or documentary grounds), continues to be pursued as a legacy claim through DGFT's grievance and appeal mechanism under the Foreign Trade (Development & Regulation) Act, 1992. This legacy dispute-resolution work should never be presented to a client as an active, ongoing incentive available for new exports.

Overview

MEIS and SEIS legacy advisory covers the claims and the pending issues under the Merchandise Exports from India Scheme (MEIS) and the Service Exports from India Scheme (SEIS) — the export incentive schemes of the Foreign Trade Policy 2015-20, which were replaced from 1 January 2021 by the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for the goods exports and a separate scheme for the services. The legacy work is the outstanding MEIS and SEIS claims of the pre-January 2021 exports: the scrips earned, the claims filed or pending, the disputes with the DGFT, and the tax treatment of the incentives received.

The MEIS and SEIS incentives are the export benefits the policy promised for the exports made before the schemes were replaced, and the legacy position is the money the exporter is still owed and the compliance it still carries. The scrips and the claims must be tracked, the disputes with the DGFT answered, and the incentives received must be taxed correctly under the Income-tax Act 1961 — the export incentives are taxable as the business income.

The cost of an abandoned legacy position is the unclaimed benefit and the unresolved dispute: the scrips that lapsed, the claims that died in the process, the duty drawback-style demands that followed the incentive without the response — each a value the exporter earned and did not collect.

This service is for exporters with MEIS and SEIS positions. We review the outstanding claims and the scrips, prepare and pursue the claims and the representations to the DGFT, handle the disputes and the recoveries, and manage the tax treatment of the incentives under the Income-tax Act so the legacy benefits are collected and compliant.

How It Works

  1. 1

    Legacy Position Review

    We review the outstanding MEIS and SEIS claims and scrips.

    Harun Raaj & Associates does this1 week
  2. 2

    Claim Preparation & Filing

    We prepare and pursue the claims with the DGFT.

    Harun Raaj & Associates does this2-4 weeks
  3. 3

    Dispute & Representation Handling

    We handle the disputes, the representations and the recoveries.

    Harun Raaj & Associates does thisAs required
  4. 4

    Tax Treatment

    We manage the income-tax treatment of the incentives received.

    Harun Raaj & Associates does thisAnnual
  5. 5

    Position Closure

    We close the legacy positions with the benefits collected and the disputes resolved.

    Harun Raaj & Associates does thisAs required

Frequently Asked Questions

What were MEIS and SEIS and are they still available to Indian exporters in 2026?
The Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) were export incentive schemes under Chapter 3 of the Foreign Trade Policy (FTP) 2015-2020. MEIS was replaced by the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme with effect from January 1, 2021 per Notification No. 19/2015-2020 dated August 17, 2021. SEIS was discontinued for services rendered from April 1, 2020 onwards per DGFT Policy Circular No. 55/2015-20 dated September 25, 2021. The FTP 2023 (effective April 1, 2023) does not include MEIS or SEIS; instead, exporters of goods access RoDTEP and exporters of services access the reconstituted Market Access Initiative (MAI) scheme for promotion activities. However, MEIS and SEIS claims for eligible exports made before their respective cut-off dates are still pending adjudication at DGFT offices and remain valid entitlements.
Can exporters still file MEIS or SEIS claims for old export periods and what is the current status of pending claims?
Exporters may still file MEIS applications for goods shipped up to December 31, 2020 (the last eligible date), subject to the limitation period: under Para 9.06 of the FTP 2015-2020, applications must be filed within 12 months from the Let Export Order (LEO) date, or within any extended period notified by DGFT. DGFT has extended MEIS filing deadlines multiple times; as of mid-2026, any deadline extensions must be verified on the DGFT website (dgft.gov.in) as no further blanket extensions have been confirmed beyond those previously announced. SEIS claims for services exported between April 2019 and March 31, 2020 (the last eligible service period) are still pending for many exporters. The Ministry of Commerce released funds for SEIS 2019-20 via scrip allocation in tranches; exporters whose SEIS scrip applications were approved but scrips not yet issued should track their applications on the DGFT portal. Unresolved MEIS/SEIS receivables are legitimate balance-sheet assets that require provisioning decisions in financial statements under Ind AS 37.
What is the income tax treatment of MEIS and SEIS scrips received by exporters?
MEIS and SEIS duty credit scrips constitute income in the hands of the exporter and are taxable as business income under Section 28(iiib) of the Income Tax Act 1961 in the year the scrips are received or the right to receive them is established as reasonably certain — the method of accounting (cash or mercantile) governs the timing. The CBDT clarified through various assessment proceedings that such export incentives are revenue receipts and do not qualify as capital receipts, and they are included in the total turnover for the purpose of computing deduction under Section 80IC or Section 80IB if applicable to the exporter. When the scrip is used to pay import duties, the duty paid is allowable as a business deduction under Section 37(1) and the scrip utilised reduces the book value of closing stock of scrips. If a scrip is sold in the secondary market, the gains (scrip value minus face value, if bought at a discount) are also revenue income. For AY 2026-27, these provisions of the Income Tax Act 1961 continue to apply.
What replaced MEIS for goods exporters and how does RoDTEP work?
RoDTEP (Remission of Duties and Taxes on Exported Products) replaced MEIS from January 1, 2021 for goods exports under the Customs Act 1962. RoDTEP remits the embedded central, state, and local taxes and levies on exported goods that are not refunded under any other mechanism — including VAT on fuel used in transportation, electricity duties, and mandi taxes — at rates notified product-wise in the RoDTEP Schedule issued by the Department of Commerce. Unlike MEIS (which was an incentive over and above cost recovery), RoDTEP is designed as a pure duty remission to ensure WTO compliance under the Agreement on Subsidies and Countervailing Measures. The refund is credited as transferable e-scrips in the exporter's ledger account on the ICEGATE portal under Customs Notification No. 19/2021-Customs dated February 2, 2021, and can be used to pay Basic Customs Duty on imports. RoDTEP rates for many labour-intensive sectors are lower than the erstwhile MEIS rates, which has impacted the profitability of some exporters.
How should a CA firm help a client account for and recover pending MEIS/SEIS receivables that are stuck in litigation or delay?
A CA firm should first obtain the full DGFT file number, application date, and acknowledgment for all pending MEIS/SEIS claims and verify the claim status on the DGFT portal or through the relevant Regional Authority (RA). Where claims are held up due to DGFT's own processing backlog (as opposed to any applicant deficiency), the exporter can file a representation citing Para 9.06 of the FTP 2015-2020 and DPIIT guidelines; if unresolved, a writ petition under Article 226 of the Constitution of India in the jurisdictional High Court for mandamus compelling DGFT to process the application is maintainable. For accounts, under Ind AS 37, claims where the probability of receipt is 'more likely than not' should be recognised as an asset; where doubtful, they require disclosure as a contingent asset under paragraph 31. If the claim is impaired, a provision under Ind AS 37 is required. The CA should also verify that input tax credit claimed under the GST on purchases used for the exported goods is consistent with the MEIS/SEIS claim period to avoid conflicting positions before the GST department.

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