Last Updated: July 30, 2026 by RASP International Editorial Team

Discontinued Scheme | Historical Reference

SEIS

Service Exports from India Scheme. Discontinued from 1 April 2020. No direct replacement currently exists for service exporters.

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Important notice: SEIS is no longer active

The Services Exports from India Scheme (SEIS) was discontinued for services rendered on or after 1 April 2020. Unlike the merchandise side where MEIS was replaced by RoDTEP, there is no direct replacement scheme for services. This leaves a structural gap in India’s export incentive architecture that service exporters need to understand and navigate.

If you are reading this page hoping to claim current benefits, the answer is that SEIS is closed. However, legacy SEIS scrips issued for pre 1 April 2020 services may still be in play depending on their issue date and validity. The post SEIS landscape for service exporters is also more varied than most realise, with tax and regulatory levers that partially substitute for the direct SEIS rebate.

What SEIS was and why it existed

SEIS was launched under the Foreign Trade Policy 2015 to 2020 as the dedicated incentive scheme for service exporters from India. It replaced the earlier Served From India Scheme (SFIS) and was the primary vehicle for the government to support the services export sector, which consistently contributed significant foreign exchange earnings.

Under SEIS, eligible service providers received Duty Credit Scrips equivalent to a percentage of their net foreign exchange earnings from notified services. Scrips were issued at rates ranging from 3 percent to 7 percent, depending on the service category. High priority service exports like research and development services, education services, hospital services, tourism and travel services, and business services attracted the upper end of the range. The scrips were fully transferable and could be used by the service exporter, or sold to merchandise importers to pay Basic Customs Duty.

For Indian IT companies, consulting firms, healthcare providers, and other service exporters, SEIS represented a meaningful direct incentive on foreign exchange earnings. The scheme recognised that service exports earn India foreign exchange just as merchandise exports do, and should receive comparable incentive support.

Which services were covered under SEIS

SEIS coverage was defined through Appendix 3D of the Handbook of Procedures. Notified services included the following broad categories. This list is historical reference, not a live scheme:

Business Services

Legal services, accounting and auditing, tax consulting, management consulting, architectural services, engineering services, advertising, market research, and technical testing.

Communication Services

Courier services, telecommunication services, and audio visual services.

Construction and Related Engineering

General construction work, installation services, and civil engineering consultancy.

Education Services

Higher education services, adult education, and specialised training.

Environmental Services

Sewage services, refuse disposal, sanitation, and environmental remediation.

Health Related Services

Hospital services, health related social services, and certain medical services.

Tourism and Travel

Hotels and restaurant services, travel agency services, and tour operator services.

Recreational, Cultural and Sporting Services

Entertainment services, news agency services, library services, museum services, and sporting services.

Transport Services

Maritime transport, air transport, rail transport, and road transport services.

Each category had specific eligibility criteria and rebate rates. Documentation required invoices, proof of foreign exchange realisation through banking channels, and specific registration or authorisation where applicable.

Why SEIS was discontinued

WTO vulnerability

SEIS, like MEIS, was constructed as a direct export incentive. Under the WTO Agreement on Subsidies and Countervailing Measures, direct export incentives are classified as prohibited subsidies. While the WTO challenge by the United States was focused on MEIS, the Indian government recognised that SEIS faced similar structural vulnerability. The Foreign Trade Policy 2015 to 2020, under which SEIS operated, expired and SEIS was not carried forward into FTP 2023 in its original form.

Fiscal considerations

SEIS was fiscally expensive. Service exports grew year over year, and the rebate outlay grew correspondingly. Budget pressure and the need for fiscal discipline played a role in the decision not to continue SEIS.

Structural policy shift

Under the Foreign Trade Policy 2023 launched on 1 April 2023, India moved from incentive based schemes to remission based schemes for goods. The services side of the policy shifted focus to facilitation, market access, and ease of doing business rather than direct financial incentives. The rationale: services exports benefit most from regulatory simplification, tax treaty improvements, and bilateral trade agreements that open markets.

The cliff edge: 1 April 2020 sunset

SEIS applied to services rendered up to 31 March 2020. Services rendered on or after 1 April 2020 are not eligible. The date is determined by when the service was rendered, not when the invoice was raised or payment received. Service exporters with ongoing multi year contracts had to split their claim between pre and post 1 April 2020 service delivery dates.

This created transition complexity for many IT services firms, consulting companies, and healthcare providers whose engagements spanned the sunset date. Careful documentation of service delivery dates, milestones, and invoice periods was critical to claim the SEIS portion eligible for pre sunset rebates.

What post SEIS service exporters can still leverage

With no direct replacement scheme, Indian service exporters in 2026 rely on a combination of tax, regulatory, and trade policy mechanisms to maintain competitiveness. Understanding this stack is essential.

GST zero rating of service exports

Under the GST regime, export of services is zero rated. Service exporters can claim input tax credit refunds either through the Letter of Undertaking route (no GST charged on exports, refund of input GST credit) or the IGST route (pay IGST on exports, claim refund). Properly structured, this delivers meaningful cash flow support. Our GST Compliance for Exports service handles both routes.

Double Tax Avoidance Agreements

India has DTAAs with over 90 countries. Service exporters can claim reduced withholding tax rates on fees received from treaty partner countries. A well structured engagement leverages the DTAA benefit to reduce tax leakage on foreign earnings.

Softex filing and FEMA compliance

Service exports in the software and ITeS categories require Softex filing with the RBI through the authorised dealer bank. Proper Softex documentation protects realisation rights and supports various downstream benefits.

Status Holder recognition for service exporters

Service exports contribute to Status Holder qualification with applicable weightages. Service exporters who cross the cumulative FOB equivalent threshold can obtain One Star, Two Star, or higher Export House recognition, which unlocks priority customs clearance, self certification, and other benefits.

FTAs and CEPAs

Trade agreements like the India UAE CEPA open 111 service sub sectors for Indian service providers. This is not a direct rebate, but it is a structural market access benefit that substitutes for incentive support in many cases.

SEZ and IFSC structures

Services delivered through Special Economic Zones or International Financial Services Centre units (like GIFT City) continue to enjoy specific tax and regulatory preferences. For larger service exporters, relocating or structuring through these zones can substitute for the removed SEIS benefit.

Industry specific schemes

Certain sectors have targeted support. Indian IT and ITeS exports benefit from the Software Technology Parks of India (STPI) framework. Tourism has its own state and central level incentives. Education and healthcare have specific bilateral recognition arrangements. Talk to our advisory team for a sector specific mapping.

Legacy SEIS scrip handling

Scrip validity

SEIS scrips issued for services rendered up to 31 March 2020 retain validity as per the original issue terms. Most have a 24 month validity window. By 2026, the majority of SEIS scrips have expired. Any still in hand should be checked for validity immediately.

Utilisation

Valid SEIS scrips are usable at Customs for payment of Basic Customs Duty on imports. Service exporters who have their own import requirements can consume scrips directly. Those without import activity can sell on the ICEGATE scrip transfer module.

Transfer

SEIS scrips are fully transferable. Market discount is typically 2 to 5 percent. If you have scrips approaching expiry, transfer immediately.

Pending claims and disputes

Some SEIS claims filed before the sunset are still being processed or are caught in dispute. If you have an unresolved legacy claim, escalate through the Policy Relaxation Committee if the amount justifies it. Our DGFT consultants handle legacy SEIS redemption and dispute cases.

Why this matters for service exporters in 2026

The discontinuation of SEIS without a direct replacement means Indian service exporters compete internationally without a dedicated incentive parallel to what RoDTEP provides for goods. This is a structural disadvantage. Competitor economies like the Philippines, Ireland, and Eastern European countries often offer direct financial incentives or tax holidays for services exports that India no longer matches.

The strategic response is to build competitiveness through the factors India does provide. Deep talent pool. Cost efficiency. Timezone advantage for global delivery. Strong DTAA network. Growing FTA portfolio. Quality of engagement. These are the levers that work in the post SEIS world.

Policy conversations continue about whether a services specific remission scheme or a targeted incentive for high priority service categories might be introduced under future FTP amendments. Service exporter industry bodies continue to make representations. The outcome remains uncertain. The FICCI and NASSCOM have both published positions calling for restoration of services incentives.

Frequently Asked Questions

Is SEIS coming back?

As of April 2026, no replacement scheme has been announced. Industry bodies continue to lobby for a services remission scheme analogous to RoDTEP, but nothing concrete has been notified.

Can service exports claim RoDTEP?

No. RoDTEP is a merchandise scheme only. Services have no equivalent remission scheme currently.

My SEIS scrip has expired. Can I extend it?

No. Expired scrips have zero value and cannot be revalidated. This is why early utilisation or transfer is critical before expiry.

Do service exports count for Status Holder qualification?

Yes. Service exports reported on Form 1C with DGFT count towards Status Holder Certificate thresholds with applicable weightages.

What is the best incentive for a software services exporter today?

Combined use of GST zero rating refund, DTAA benefits, STPI benefits where applicable, and Status Holder recognition. No single scheme matches what SEIS offered, but the combined stack is meaningful.

Can I claim SEIS for services I invoiced after April 2020 but for work done before?

Eligibility is based on when the service was rendered, not when it was invoiced. Services rendered before 1 April 2020 remain eligible even if invoiced and realised later, subject to documentation.

Do foreign exchange earnings from services count for Bank Realisation Certificate purposes?

Yes. Foreign exchange earnings from services are captured through the Softex mechanism for IT services, or through standard banking channel documentation for other services. These count for various downstream filings.

Should I still file historical SEIS paperwork?

If you have unresolved claims, demand notices, or disputes from the SEIS era, yes. Close out legacy matters. If you have no open items, keep your records for at least seven years for audit trail purposes.

How RASP International supports service exporters

Legacy SEIS scrip audit

We audit your historical SEIS scrip inventory, identify scrips still within validity, advise on utilisation or transfer, and coordinate sale on ICEGATE.

Post SEIS compensation strategy

We map your service export profile against every available tax, regulatory, and trade lever. GST refund optimisation, DTAA structuring, Status Holder application, CEPA utilisation, STPI registration, and more. Most service exporters discover meaningful upside they had not pursued.

SEIS legacy dispute handling

Pending demand notices, show cause notices, or Policy Relaxation Committee cases from the SEIS era get handled by our DGFT team. We respond on your behalf and coordinate with Regional Authorities.

GST refund for service exports

Our GST compliance team structures LUT filings, handles RFD 01 refund applications, and coordinates with jurisdictional officers to clear refunds within the statutory timeline.

Status Holder for service exporters

We prepare Status Holder Certificate applications for service exporters, leveraging Form 1C service export data and eBRC evidence.

Advisory on bilateral agreements and CEPA utilisation

Where your service export target market has a CEPA or FTA with India, we advise on how to leverage the services chapter of that agreement. The India UAE CEPA is a strong example.

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