Ever since the economic slowdown happened, the Indian economy is struggling hard to revive itself to a healthy growth rate. Beginning with the topmost rating contributor to the country’s financials, ‘the exporter’ – Government of India has bought up some special export-oriented schemes to help Indian exporters take up the GDP figures ahead.
In this post, we have sorted out a list of all export-promotion schemes and opportunities which might work as a healing measure to entrepreneurs to leap up there impeded business growth in the form of duty exemption & remission.
- Export Oriented Units & Special Economic Zones:
Government through the enactment of legislation like Special Economic Zone (“SEZ”) Act, 2005 for promoting exports marked certain territory as EOU & SEZ which are basically treated as outside the customs territory of India which then can take the benefits of export promotion scheme and a great idea for entrepreneurs.
- GST Refund and Other New Tax Refund Schemes:
In case GST is paid for exports, the amount paid as Goods & Services Tax (“GST”) i.e., Integrated GST – the 90% shall be refunded within 7 working days and the balance within a period of 60 days subject to fulfillment of certain conditions and procedure. Whereas the GST is not paid the Input Tax Credit (ITC) shall be refunded on the basis of a specified formula. To define, the Refund amount shall be the maximum admissible amount.
Other than providing GST exemption benefits to Special Economic Zones (SEZs) and Export-Oriented Units (EOU), the Indian government also brings out effective offers and schemes for all those exporting out of India. Recently, a tax refund scheme
- Loan in 59 minutes:
Satisfying the most extensive and essential need of entrepreneurs, and bringing easy finance option to doors of exporters. The GOI launched its ‘’ Loan in 59 minutes” scheme, where an exporter is certain with financial assistance in no time by just furnishing few documents online including GST returns, Income tax returns, Bank statements for the last 6 months, business ownership details & related particulars. This enhances the availability of working capital with the firm and growth at the same time.
- Advance Authorization Scheme:
The scheme enables exporters to bring in their supply of goods or import inputs without paying any duty, on the fact that such goods should be used for further production of goods to be exported.
The user cannot transfer the benefit to the other user. The authorization depends on the actual usage of material subject to usage and fulfillment of terms of validity of authorization i.e., 18 months.
- Duty-Free Import Authorization (DFIA):
Some special schemes including the Duty Exemption Entitlement Certificate (DEEC), Advance licensing, and Duty-Free Replenishment Certificate (DFRC) have been also introduced to enable exporters to get duty free imports on inputs and other material used in the production of export good, subject to terms and conditions apply as per certificate issued…
- Towns of Export Excellence (TEE) Scheme:
Towns forming goods above a stated limit or at identified locations shall be given a status of towns of export excellence (TEE). Such status shall help export houses on the basis of growth potential to receive a special status and to receive special market access through Government.
- POST Export EPCG Duty Credit Scrip Scheme:
Under this scheme, exporters can apply for an EPCG license, whereby they can pay duties to the customs officials when not sure of considering the export obligations. After paying the obligation charges, they can later claim it from the government.
- Merchandise Exports from India Scheme ( MEIS):
The schemes add reward benefits to the exporters for exporting certain goods to certain specific markets. Rewards shall then be provided based on the realized FOB (Free on Board ) value of goods.
- Marketing Development Assistance Scheme ( MDAS):
The scheme merely focuses on providing a guided route to exporters to sell there produce abroad. Certain export promotion councils shall be appointed to carry out and check for the assistance required by export houses for selling and marketing their business abroad.
- Marketing Access Initiative Scheme (MAIS):
The scheme efforts to provide a way to export houses to export, conduct market research, compliance handling through professional agencies.
- Zero Defect Zero Effect:
The scheme enables the exporters to receive eligible concessions, rebates and specific standards based on market research to produce, which shall in return help exporter to produce based on demand and get zero cancellations and defects.
- Export Duty, Custom Duty, and Service Duty Drawback:
Even some special incentives for exporters in name of refund of customs duties, export duties and other duties paid have also been initiated.
- Considering the export sector to be a great contributor to the planned agenda of ‘5 trillion economies by 2025’ of the Indian government, endless support to the SME and the export sector units has been committed. Not limited to the above-proposed schemes, more schemes will be notified by the government in the future as exporters take advantage of above and bring recognition to the country worldwide.
Please note, the list is not exhaustive of all export related schemes notified by the Government.
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