SEIS Scheme: Understanding Its Past and India’s Export Future

The Service Exports from India Scheme (SEIS) was introduced to help service-based exporters by offering duty credit scrips (incentives issued by the Government of India to exporters) of up to 7% on their net foreign earnings. This gave businesses a better cash flow window to reinvest, expand globally, and stay competitive.

However, under the Foreign Trade Policy 2023, SEIS has been discontinued. This marks a clear shift in the government’s approach: instead of subsidies, the focus is now on faster cross-border payments, digital compliance, and easier documentation. To stay competitive, exporters must adapt to this new framework and explore current alternatives and modern solutions for global payments.

But you don’t need to look elsewhere – just read on as we break down how SEIS evolved, why it was discontinued, and what exporters should do now.

Understanding the Service Exports from India Scheme (SEIS)

To encourage global trade in services, the government introduced the SEIS under the Foreign Trade Policy 2015–2020. It was designed to reward Indian businesses and professionals who earned foreign exchange through service exports. For several years, SEIS acted as a financial push for service exporters and helped India position itself as a global services hub.

Here’s what the scheme aimed to do:

• SEIS was a key part of India’s Foreign Trade Policy (2015–2020) and incentivised Indian service providers, including SaaS companies, freelancers, consultants, and IT firms.
• Its core objective was to boost service exports by offering rewards calculated as a percentage of net foreign exchange earnings.
• The scheme was created to make Indian services more competitive globally, especially across sectors like IT, healthcare, tourism, finance, and professional services.

The Evolution and Discontinuation of the SEIS Scheme

SEIS scheme was launched on 1 April 2015, replacing the Served From India Scheme (SFIS) with wider coverage and more flexible benefits. It allowed exporters to earn duty credit scrips based on foreign exchange earnings and use them to reduce costs or improve cash flow.

The scheme ended after FY 2019–20. Later, the DGFT issued a notice on 20 February 2023 confirming that SEIS benefits had stopped from 1 April 2020.

One key reason for its discontinuation was the strong performance of India’s services export sector. Policymakers assessed that exporters were already expanding globally without direct benefits, and government efforts could be better directed toward digital trade infrastructure, simplified compliance, and faster cross-border payments.

No new SEIS benefits are being issued, but exporters were allowed to file claims for services provided up to FY 2019–20. The final deadline for applications was 31 December 2021, which was later extended to 28 February 2022 through notification.

Benefits of SEIS Duty Credit Scrips for Exporters

SEIS played a crucial role in supporting India’s service export ecosystem. By offering duty credit scrips linked to foreign earnings, it helped businesses manage operational costs and improve their cash flow during expansion phases. For many service-based exporters, it acted as a safety net while entering international markets.

Here’s how SEIS duty credit scrips benefited exporters:

• Eligible service providers received financial instruments based on their net foreign exchange earnings, directly rewarding their export performance.
• Incentive rates typically ranged between 3% and 7%, depending on the service category and policy revisions.
• These scrips could be used to offset government duties and taxes, including basic customs duty, additional customs duty on imports, and central excise duty on domestic procurement.
• One of the most valuable features was free transferability  exporters could sell the scrips in the open market if they didn’t need them for duty payments, turning them into a direct cash benefit.

Explore Razorpay’s Global Payment Solutions

Eligibility Criteria and Ineligible Services for Past SEIS Claims

SEIS benefits were available only to genuine service exporters located in India. The government laid down clear eligibility conditions to avoid misuse and ensure that only actual export earnings were rewarded.

Who Was Eligible?

Here’s what the scheme required at the basics:

• Service providers had to be based in India and must have held a valid Importer Exporter Code (IEC) when the services were rendered.
• A minimum level of net foreign exchange earnings was required:

• US$15,000 for companies, LLPs, and partnership firms
• US$10,000 for individuals and sole proprietors
• Only services exported under Mode 1 (cross-border trade) and Mode 2 (consumption abroad) were considered eligible.

Who Was Not Eligible?

Certain services and income streams were excluded from SEIS benefits. Claims could not be made if:

• The foreign earnings were from equity investments, donations, debt, or loan repayments, and not from service exports.
• The income was related to financial services, regular employment abroad, or labour remittances.
• The services were supplied to units operating under EOU (Export Oriented Unit), EHTP (Electronic Hardware Technology Park), STPI (Software Technology Parks of India), or BTP (Bio-Technology Park) schemes.

Application Process for SEIS Scrips (Historical Overview)

When SEIS was active, service exporters had to follow a defined application process to claim duty credit scrips. The procedure was largely digital, but accuracy and timely documentation were critical to avoid delays or rejection.

Here’s how the application process worked in practice:

• The application for SEIS duty credit scrips was filed online each year through the DGFT portal, using the prescribed ANF 3B form along with a valid digital signature. Only applications submitted through this format were considered for evaluation.
• To support the claim, exporters had to attach several essential documents. These typically included the Importer Exporter Code (IEC) Certificate, Registration-cum-Membership Certificate (RCMC) from the relevant export promotion council, a detailed statement of export invoices, and Bank Realisation Certificates (BRCs) or FIRCs to prove that foreign exchange had been received in India.
• Verification of net foreign earnings was mandatory, and this had to be certified by a Chartered Accountant (CA), Cost Accountant (ICWA), or Company Secretary (CS). The certificate was submitted along with declarations and other supporting enclosures specified by the DGFT.
• There was also a strict submission window. Applications had to be filed within 12 months from the end of the financial year in which the services were rendered. Submissions made after this deadline were still accepted in some cases, but could invite penalties, and delays increased the risk of rejection.

Navigating the Post-SEIS Landscape: Alternatives for Service Exporters

With SEIS no longer active, exporters now need to shift their focus to other available support mechanisms. While incentives may not follow the same format as duty credit scrips, several schemes still offer financial assistance, credit support, and market access to help grow service exports in global markets.

Here are key alternatives worth exploring:

• The Market Access Initiative (MAI) scheme offers funding for export promotion activities such as market research, international trade fairs, overseas branding, and delegation visits.
• The Interest Equalisation Scheme (IES) reduces borrowing costs by providing subsidised interest rates on pre- and post-shipment rupee export credit for eligible exporters.
• Multiple startup support programmes and state-level export incentives now focus on helping service-based businesses adopt technology, improve processes, and build global capabilities.
• Exporters may also benefit from sector-specific initiatives under Make in India, Digital India, and Startup India, depending on their service category and growth stage.

MAI vs IES

Ease your Global Transactions with Razorpay MoneySaver Export Account

When SEIS was active, exporters could offset costs using duty credit scrips. With those incentives now discontinued, managing expenses on cross-border payments has become a key concern  especially for service exporters who operate on tight margins. That’s where the Razorpay MoneySaver Export Account comes in. 

Instead of depending on incentives, exporters now have access to a system built not only for cost efficiency, but also for faster settlements, seamless documentation, and reliable compliance  all in one place. Here’s how it can help you:

Receive International Payments Like a Local Vendor

Razorpay creates a virtual account in your name, with local bank transfer details for regions such as the US, UK, and Europe. Clients can pay you using domestic methods like ACH or SEPA. Funds are then converted and settled in INR directly to your Indian bank account. This makes the payment experience familiar for your clients and faster for you.

Reduce Forex Charges and Hidden Transfer Fees

Traditional bank transfers often include hidden charges and markups on currency conversion. The MoneySaver Export Account helps exporters save significantly by offering zero forex markup, and transparent conversion at the live market rate. This improves your earning margin right at the payment stage  without waiting for incentives like SEIS.

Automated Digital FIRC for Faster Export Documentation

Exporters frequently face delays while waiting for FIRC and payment proof from banks. Razorpay solves this with automated digital FIRC, generated within seconds of settlement. Instead of requesting documents manually or making follow-ups, you have access to export-ready documentation that keeps your records organised and easier to track.

Higher Success Rates With Global Payment Gateway

If you take payments through your website, invoices, or e-commerce platforms, Razorpay’s international payment gateway helps you offer a smooth payment experience to buyers abroad. It supports Apple Pay, international cards, and digital wallets  while maintaining 90%+ global success rates using intelligent routing and fraud protection. This improves conversions and reduces failed transactions during the checkout process.

Conclusion

SEIS played a major role in strengthening India’s service export ecosystem between 2015 and 2020. It offered a financial cushion through duty credit scrips and helped many businesses expand their presence overseas. But with SEIS now discontinued, the export landscape has moved towards a more efficiency-driven model.

Today, service exporters need to rely on new government schemes, digital payment solutions, and smarter financial tools to manage international operations. The focus is clear  faster payments, clean compliance, and better visibility into export transactions.

FAQs

1. What is the full form of SEIS and its main objective?

SEIS stands for Service Exports from India Scheme. It was introduced under the Foreign Trade Policy (2015–2020) to encourage India’s service exports by offering incentives on net foreign exchange earnings.

2. Is the SEIS scheme still active for Indian service exporters?

No. SEIS was discontinued after the financial year 2019–20, and no direct replacement has been announced specifically for service exporters.

3. How did SEIS Duty Credit Scrips work, and what could they be used for?

SEIS duty credit scrips were issued as incentives based on the net foreign exchange earned by the exporter. They could be used to pay import duties, excise duties on domestic purchases, and other eligible taxes.

4. What were the eligibility criteria for claiming SEIS benefits?

To be eligible, a service provider had to:

• Be based in India with an active IEC
• Earn minimum net foreign exchange of:
  • USD 15,000 (for companies), or
  • USD 10,000 (for individuals/sole proprietors)
• Only services exported under Mode 1 and Mode 2 were considered eligible.

5. What documents were required to apply for SEIS scrips?

Typical documents included:

• IEC Certificate
• RCMC
• Export invoice statements
• BRC or FIRC as proof of forex realisation
• CA/ICWA/CS certificate confirming net foreign exchange earnings

6. Are there any alternatives to SEIS for service exporters?

There is no one-to-one replacement, but exporters can benefit from other schemes such as:

• Market Access Initiative (MAI)
• Interest Equalisation Scheme (IES)
• Startup-focused and state-level export promotion programs

7. How can the Razorpay MoneySaver Export Account help service exporters?

The Razorpay MoneySaver Export Account offers a modern way for Indian exporters to receive international payments without dealing with complex bank procedures or repeated clarifications. It enables exporters to receive funds through local bank transfers from clients abroad, which feel like domestic payments for them.