Govt to clamp down on large firms dodging Rs 2 cr cap on MEIS claims

Worry over major exporters filing separate export benefit applications through subsidiaries to work around the cap

Anticipating a move by some companies to divide their claims for benefits under the Merchandise Exports of India Scheme (MEIS) to work around the new Rs 2-crore cap, the commerce department has decided to keep a close watch on filings.

Earlier this month, the department capped MEIS claims at Rs 2 crore for every exporter on transactions made between September 1 to December 31. It also announced the scheme will finally be stopped on January 1, 2021. According to industry analysts, this will impact large exporters such as two-wheeler makers Bajaj Auto and TVS Motor apart from major engineering goods exporters.

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