The central government has announced that benefits available to Indian exporters under Merchandise Exports from India Scheme (MEIS) for period of September 2020 to December 2020 will be capped. Further, the scheme will be withdrawn from January 2021.
MEIS under Foreign Trade Policy of India (FTP 2015-20) was one of the two schemes introduced in Foreign Trade Policy of India 2015-20, as a part of Exports from India Scheme. (The other scheme being SEIS, Service Exports from India Scheme).
As per the recent notification dated 1st September 2020, a total limit per IEC (Importer Exporter Code) holder is capped at Rs 2 crores (INR 20 million) for the period 01.09.2020 to 31.12.2020. This is subject to further downward revision per IEC holder to ensure that total payout under the scheme does not exceed prescribed allocation of Rs. 5,000 crores.
All inactive exporters (those who have not done any exports in the past 12 months) as well as all new exporters registered on or after 1st September 2020 have been excluded for the payout as well.
Further the scheme stands completely withdrawn from 1st January 2021.