The government on Thursday said it has imposed a limit on the total entitlement under services export incentive scheme SEIS for shipments made during 2019-20, at Rs 5 crore per exporter.

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The Directorate General of Foreign Trade (DGFT) has notified a list of eligible services and rates under the Services Exports from India Scheme (SEIS) for exports made during 2019-20 is being notified.

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"A limit of total entitlement under SEIS has been imposed for service exports rendered in the period April 1, 2019, to March 31, 2020, and capped at Rs 5 crore IEC (import-export code)," the DGFT said in a notification.

Further, it has been notified that the facility to claim benefits under SEIS on payments in Indian rupees would not be available for services rendered in 2019-20.

The deadline for submission of SEIS for 2019-20 will be December 31, 2021, and SEIS applications for 2019-20 will become time-barred after December 31 this year.

Services Export Promotion Council of India (SEPC) Chairman Maneck Davar said the move will benefit small and medium enterprises in the sector.

"SEPC is also committed to guide and advise all exporters on obtaining SEIS benefits. It has also written to DGFT to extend the date of filing for 2019-20 to March 31, 2022," he said.

Depending on the nature of services, the government gives duty credit scrips or certificates. The scheme is offering a reward at 3 per cent or 5 per cent of net foreign exchange earned and covers service providers located in India.

Scrips or certificates provided under the scheme can be used for payment of basic and additional customs duties on goods imported. These are freely transferable. If an exporter is not in a position to use the scrip, they can sell it on the open market.

Under five per cent rate, the sectors include professional services (like legal, taxation, engineering, veterinary and urban planning); research and development; communication (radio and television, sound recording); construction, educational, environmental, and health. Similarly, under 3 per cent rate, the services include advertising, investigation and security, packaging and printing.

In a separate notification, the DGFT said that an additional option is provided to exporters to avail extension in export obligation period till December 31 this year in case of specified advance authorisations and EPCG authorisations without any composition fees.

This benefit is, however, subjected to a five per cent additional export obligation on balance exports to be fulfilled.

EPCG (Export Promotion Capital Goods) is an export promotion scheme under which an exporter can import a certain amount of capital goods at zero duty for upgrading technology related to exports. On the other hand, advance authorisation (AA) is issued to allow duty-free import of inputs, which is physically incorporated in the export product.

For both AA and EPCG authorisations, where the original or extended export obligation period is expiring during the period between August 1, 2020, and July 31, 2021, the obligation period would be extended till December 31, 2021, without any composition fees, it said