MEIS / SEIS Legacy Claims & Dispute Resolution

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.

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.

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.

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.

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.