What Is the MSME Interest Subvention Scheme 2026?

The Micro, Small and Medium Enterprises (MSME) Interest Subvention Scheme is a government-backed export credit support scheme that provides cover for 2.75% of the annual interest costs on eligible MSME export loans, so the exporter only pays the bank the balance interest cost from day one. The benefit is built into the loan from the start, with the government paying part of the interest cost up front, rather than exporters paying full market interest rates and waiting for a policy rebate down the track.

The scheme was introduced under the <a href="https://www.dgft.gov.in/CP/?opt=export-promotion-mission">Export Promotion Mission</a> (Niryat Prothsahan) through the Directorate General of Foreign Trade (DGFT) <a href="https://worldtradescanner.com/20-Trade%20Notice-Interest%20Subvention-signed.pdf">Trade Notice No. 20/2025-26 dated 2 January 2026</a>. It replaced the earlier Interest Equalisation Scheme, which ended in 2024.

It is accompanied by a second, related intervention, collateral support for export credit, launched at the same time to address a different pain point (lack of collateral) faced by small exporters. Both interventions are part of a much bigger effort: the Union Cabinet on November 12, 2025, approved the <a href="https://www.skydo.com/blog/export-promotion-schemes">Export Promotion</a> Mission itself, which has a total outlay of ₹25,060 crore and runs from FY 2025-26 to FY 2030-31. The mission is jointly implemented by the Department of Commerce, the Ministry of MSME and the Ministry of Finance.

What are the Eligibility Criteria under the MSME Interest Subvention Scheme?

An MSME manufacturer or merchant exporter with a valid active IEC and Udyam registration, exporting a product on the scheme's positive list of tariff lines, is eligible. The conditions are specific, so review them carefully:

Both IEC and Udyam conditions must be met at the same time. Many banks also require a signed affidavit stating you satisfy these conditions and haven't claimed the benefit from multiple lenders, so keep it ready with your certificates.

What Are the Key Benefits of MSME Interest Subvention Scheme?

Key benefits are lower borrowing costs from day one, better liquidity during the export cycle, more competitive access to finance, and a WTO-consistent design with no performance conditions attached. For a small exporter with stretched working capital, the attraction of this scheme is more than just the headline interest rate cut.

How Does the Interest Subvention Scheme Work?

The scheme works as a four-party process: the bank offers a discounted rate upfront and later claims the interest it waived from the RBI. The four parties involved are the MSME borrower, the lending bank, DGFT (which manages eligibility and issues the UIN), and the RBI (which reimburses the bank) as per the applicable interest subvention scheme RBI circular.

Step 1: MSME applies for export credit. You approach your commercial bank for pre-shipment or post-shipment rupee export credit. The bank first quotes its normal market rate, say 10% per annum.

Step 2: Register the loan on the DGFT portal. Once the loan is disbursed, you log in to the DGFT portal and file an intent to avail the subvention. A Unique Identification Number (UIN) is generated from the DGFT portal, and the bank uses this UIN to certify your eligibility.

Timing note: DGFT says the subvention will be applicable only if the UIN is generated within 15 days of the loan disbursal (from FY 2026-27). DGFT made this easier specifically for FY 2025-26 (the transition year for the scheme) through a clarification in May 2026, under which UINs created up to 31 May 2026 can still be counted from the original disbursal date, in view of delays in banks' onboarding. The rule going forward, though, is the 15-day clock, so don't sit on this step.

Step 3: The bank applies the discount rate in advance. Once the UIN is validated by your bank, you get an instant reduction of 2.75% from your effective interest rate. So if your normal rate is 10%, your effective rate becomes 7.25%. You then pay EMIs or interest at this lower rate thereafter, not the original one.

Step 4: The bank claims reimbursement from the RBI. Your bank isn't going to add that 2.75% on top of its own margin; it aggregates all the subvention accounts and submits one claim to the RBI, which certifies and repays the bank from government funds as per the prevailing interest subvention scheme RBI circular for the relevant financial year.

How To Apply for the MSME Interest Subvention Scheme 2026?

The process involves checking eligibility, taking export credit at a bank as usual, and then registering the loan on the DGFT portal to generate a UIN and sharing it with the bank. The entire process is digital and runs parallel to the normal loan application; there is no separate subsidy paperwork to chase at a government office.

Screenshot 2026-08-31 at 7.18.43 PM.png

MSME Interest Subvention Scheme vs Interest Equalisation Scheme: Key Differences

The MSME Interest Subvention Scheme is not a rebrand but a structurally different scheme. Both schemes share the broad purpose of lowering the cost of export credit, but this scheme differs in rate structure, caps, product coverage and policy integration from the old Interest Equalisation Scheme (IES), the scheme many exporters still know from the interest subvention scheme for exporters 2020-21 period.

Practical implication: If you were eligible under the older interest subvention scheme for MSME 2020-21 framework, this is not an automatic carryover. You will have to re-register under the new scheme on the DGFT portal and separately confirm that your product is covered by the current positive list of tariff lines.

How Does Skydo Help Indian Exporters Receive International Payments?

<a href="https://www.skydo.com/">Skydo</a> helps Indian MSME exporters receive international payments at flat and transparent fees and provides FIRA and eBRC support required for DGFT compliance. Capping interest costs with the subvention scheme is only half the battle for protecting export margins; the other half is ensuring the foreign buyer's payment reaches the exporter's account without silent deductions eating up the money just saved on financing.

Forex markups and correspondent bank charges on traditional banking channels and platforms like PayPal can consume as much as 8% of the value of a payment, easily wiping out the benefit of a 2.75% interest subsidy on a modest loan.

Skydo is built for Indian MSME exporters getting paid by international clients. It provides:

large_Paypal business account

medium_Paypal business account

small_Paypal business account

thumbnail_Paypal business account

Paypal business account

Form 15CA is a self-declaration that any individual or entity must file with the Income Tax Department ‌in India before they remit money to a non-resident or a foreign company. Form 15A is an official notice by the remitter that they are aware of the tax obligations for the transaction. Rule 37BB of the Income Tax Rules governs Form 15CA, and it is filed through the Income Tax e-filing portal.

The purpose of Form 15CA is to track foreign outflows and verify that the remitter has deducted the correct amount of tax. If you are an Indian exporter or freelancer receiving money, your foreign client is the one filing an equivalent form in their country. However, your client may ask you for documents like your PAN or a tax residency certificate to complete their filing.

Download Form 15CA&nbsp;<a href="https://www.incometaxindia.gov.in/documents/d/guest/103120000000007842-pdf-5">here</a>

Form 15CB is a certificate issued by a practicing Chartered Accountant (CA) who confirms that the foreign remittance has been taxed appropriately. The CA examines the nature of the payment and the provisions of any <a href="https://www.skydo.com/blog/dtaa-guide-india">Double Taxation Avoidance Agreement (DTAA)</a> to determine the correct TDS rate. This certificate is like an independent audit of the transaction and is prepared before the funds are sent abroad.

Form 15CB is mandatory when the remittance is taxable in India and the total value exceeds ₹5 lakh in a financial year. If the payment is below this threshold or is not taxable, Form 15CB is not needed. The CA must file Form 15CB on the tax portal before the remitter uploads Part C of ‌Form 15CA.

Download Form 15CB <a href="https://www.incometaxindia.gov.in/documents/d/guest/103120000000007843-pdf">here</a>.

<a></a>Form 145/146 vs Form 15CA/15CB: What All is Changing?

Form 145/146 has replaced Form 15CA/15CB. While the core requirement to declare transfers remains, there are changes to how cross-border payments are reported and audited.

Mandating Tax Identification Numbers (TIN): You must provide the Tax Identification Number (TIN) of the foreign recipient. You can no longer leave this field blank, even if you are not claiming DTAA benefits.

Introducing Granular Nature Codes: The new form uses a strict dropdown menu with 65 precise transaction sub-codes. You can no longer use vague descriptions for the remittance; every transfer must map exactly to a predefined category.

Integrating Bank and Tax Networks: Form 145 captures the Authorized Dealer (AD) Bank’s Income Tax Department Reporting Entity Identification (ITDREIN). This unique ID links your tax filing directly to the bank’s reporting system, allowing the tax department to flag mismatches immediately.

Automating Data via Form 146 Pre-Fills: Part C of Form 145 is now auto-filled by the system once your CA files Form 146. The portal pulls data directly using the Acknowledgement Receipt Number (ARN), which reduces manual entry errors.

Structuring Data for AI Scrutiny: The fields in Form 145 and 146 feed directly into the Income Tax Department's backend ITBA portal. Automated algorithms perform immediate risk analysis on all outward remittances.

Any resident in India making a payment to a non-resident or a foreign company must file Form 15CA. The requirement for Form 15CB depends on the nature of the payment and the total amount sent during the financial year.

Form 15CA is divided into four parts based on the transaction situation:

Note: Certain personal transactions, such as medical treatment, education abroad may have separate RBI-exempt thresholds that do not require these forms.

Form 15CA and 15CB are required when a resident in India sends money to a non-resident and the payment is chargeable to tax in India. The following table summarizes the requirements for each form.

<a></a>When You Don't Need to File Form 15CA or 15CB

Here are some common scenarios where you don’t need to file Form 15CA or Form 15CB:

For Indian IT services exporters and freelancers, specific Rule 37BB exemptions often apply. Here are the most relevant categories:

Form 15CA vs Form 15CB: Similarities &amp; Differences

Form 15CA and Form 15CB function as two parts of the same compliance chain for international payments. Form 15CA is the remitter’s own declaration; Form 15CB is a CA’s independent verification. Both forms are filed through the Income Tax e-filing portal and are governed by Rule 37BB.

Similarities between Form 15CA and Form 15CB

Differences between Form 15CA and Form 15CB

The Form 15CA and Form 15CB formats depend on the value and tax status of the money being sent. Form 15CA is divided into four distinct parts to cover different remittance scenarios.

How to File Form 15CA Online: Step-By-Step Process

You must file Form 15CA online through the Income Tax e-filing portal. Complete this filing before the bank processes your foreign transfer:

Screenshot 2026-08-31 at 4.04.26 PM.png

Screenshot 2026-08-31 at 4.05.05 PM.png

Screenshot 2026-08-31 at 4.05.44 PM.png

Screenshot 2026-08-31 at 4.08.08 PM.png

Screenshot 2026-08-31 at 4.08.57 PM.png

How to File Form 15CB Online: Process involving CA Certificate

A Chartered Accountant must file Form 15CB online through the Income Tax portal. Here are the steps to follow:

Screenshot 2026-08-31 at 4.10.09 PM.png

What Documents Are Required to File Forms 15CA and 15CB?

The documents required to file Form 15CA and Form 15CB include a document list to be shared by the sender, receiver, and other transaction documents.

Remittance &amp; Transaction Documents

What Are the Penalties for Not Filing Form 15CA or 15CB?

Failure to file Form 15CA or Form 15CB results in a flat penalty of ₹1,00,000 per instance. Under the Income-tax Act, 1961, this was levied under Section 271-I. In the new Income-tax Act 2025, the same penalty is covered under Section 462.

Total non-filing:  If you make a foreign transfer without submitting the forms to the tax department

Inaccurate information: You submit the form, but it contains wrong information, like incorrect tax rates, or falsified Double Taxation Avoidance Agreement (DTAA)

Delayed filing: You file the documents after the bank has already processed the transaction

2. Immediate operational consequences

Immediate transaction rejection: Banks will automatically reject international transfers if the Form 145/15CA acknowledgment number is missing.

Automated AI risk flags: If the Income Tax Department’s ITBA backend portal finds a missing form while cross-referencing banking data, it will automatically trigger compliance notices

Professional liability: CAs who certify incorrect details in Form 15CB also face professional penalties of ₹1,00,000 under <a href="https://www.incometaxindia.gov.in/w/penalties">Section 271J</a>

3. How to lawfully avoid the penalty?

Check Rule 220 exemptions: By checking the Rule 220 exemptions, you can verify if your foreign remittance falls under the specified exempt category lists (e.g., LRS individual remittances up to certain limits or direct goods imports)

Utilize the 7-day withdrawal window: The latest update in the tax laws, allow you a 7-day withdrawal period if you spot an error in Form 145 right after submitting it

How Does Skydo Help Businesses Receive International Payments with Compliance?

We talked about outward remittances and the importance of Form 15CA and Form 15CB in this blog. But as a freelancer, exporter, or a business owner with foreign clients, your day-to-day focus is on inward remittances.

Compliance plays a key role here as well. After your clients pay you, you’re supposed to maintain a proper paper trail to prove that you received foreign income in India and for filing taxes online. Getting these documents from your bank takes a lot of time and costs money.

Skydo is a quick and cost-efficient alternative to banks.

Skydo auto-generates a <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">Foreign Inward Remittance Certificate (FIRC)</a> for every inbound payment you receive from abroad. An FIRC is like ‌Form 15CA for inward remittances. All payment records on Skydo are PAN-linked, allowing your CA to use them directly for tax filing and <a href="https://www.skydo.com/blog/softex-form-guide-indian-exporters">eBRC generation</a>.

Settlements are predictable and occur within one business day. Skydo offers free virtual accounts in USD, EUR, GBP, and other major currencies with flat, transparent pricing.

Not sure if Skydo is the right fit for your business? Get a <a href="https://www.skydo.com">free demo</a> today.

large_Export Payment Terms

medium_Export Payment Terms

small_Export Payment Terms

thumbnail_Export Payment Terms

Export Payment Terms

What Is Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme?

The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme is a Government of India initiative introduced in 2021 to help exporters recover eligible taxes, duties and levies that remain embedded in the cost of exported goods but cannot be reclaimed through existing tax refund mechanisms.

Under RoDTEP, eligible exporters receive a digital duty credit called an e-scrip. The benefit is generally calculated as a percentage of the shipment's Free on Board (FOB) value, although certain products may qualify for a fixed amount per unit.

Eligible costs can include fuel-related taxes, electricity duties, mandi fees, market cess and certain non-creditable taxes on inputs and services, subject to the applicable product conditions.

RoDTEP replaced the Merchandise Exports from India Scheme (MEIS) and was introduced to address unrefunded taxes and duties embedded in exported goods rather than provide a general export incentive. For the latest applicable rates and updates, always check the <a href="https://www.skydo.com/blog/rodtep-scheme-guide">RoDTEP scheme rates, notifications and benefits</a>.

Manufacturer exporters and merchant exporters of Indian-origin goods are eligible for RoDTEP, with no minimum turnover requirement, provided several specific conditions are also met.

No turnover threshold applies to either manufacturer or merchant exporters, which keeps the scheme open to small and large exporters alike. Additionally,

Products under export restrictions or prohibitions, deemed exports, and goods manufactured in bonded warehouses all fall outside the scheme. Apart from this,

Beyond RoDTEP, several other export incentive schemes exist for Indian exporters, covered in<a href="https://www.skydo.com/blog/export-promotion-schemes"> export promotion schemes</a>.

The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme provides a rebate on eligible central, state and local duties, taxes and levies that remain embedded in exported goods and are not refunded through another mechanism. The benefit is generally calculated against the Free on Board (FOB) value of the export at the rate notified for the relevant tariff line, subject to any applicable per-unit cap.

The benefit is issued electronically as a transferable RoDTEP e-scrip through the Indian Customs Electronic Gateway (ICEGATE). The e-scrip can be used to pay Basic Customs Duty (BCD) on eligible imports or transferred to another eligible ICEGATE user.

<a></a>Covered vs Uncovered Expenses Under RoDTEP

The RoDTEP claim generally moves through four stages:

Note: The exact RoDTEP rate depends on the product's tariff line and the notification applicable to the export. Rates and value caps can change, so exporters should check the current notified rate for their specific product rather than rely on a single scheme-wide percentage.

RoDTEP's core benefits are the rebate of previously unrecoverable taxes, transferable e-scrips that can be monetised, a WTO-compliant structure, improved cash flow, and fully digital processing.

E-scrip validity is worth a direct note here, since published guides genuinely disagree on this point, quoting one year, eighteen months, or two years. The usable life is tied to each e-scrip's own creation date, shown in the exporter's ICEGATE ledger. Checking the validity printed on the actual scrip beats trusting any generic figure quoted elsewhere.

What Are the Current RoDTEP Scheme Rates?

RoDTEP rates are notified as a percentage of the Free on Board (FOB) value of exported goods, with a per-unit value cap applying to some products. The applicable rate is linked to the product's 8-digit Harmonized System (HS) code, so exporters need to check the rate for their exact tariff line rather than rely on a general sector-wide figure.

As per Directorate General of Foreign Trade (DGFT) Notification No. 74/2025-26 dated 31 March 2026, the RoDTEP Scheme was extended from 1 April 2026 to 30 September 2026 at the rates and value caps applicable on 31 March 2026. Exporters should therefore treat 30 September 2026 as the current end date unless the scheme is extended further.

A temporary 50% reduction in RoDTEP rates and value caps, introduced through DGFT Notification No. 60/2025-26 dated 23 February 2026, was withdrawn with effect from 23 March 2026. The earlier notified rates and caps were consequently restored.

<a></a>Illustrative RoDTEP Rate Bands for 2026

The following bands are illustrative rather than fixed rates for every product within a sector. The actual benefit depends on the exact 8-digit HS code and the applicable notified rate and value cap.

Rates can be higher for certain textile, apparel and other labour-intensive product lines. To identify the rate applicable to an export, check the exact 8-digit HS code in the current DGFT RoDTEP schedule (Appendix 4R). A mismatch in the HS code declared on the shipping bill can result in the wrong rate being applied or affect the claim.

The percentage rate and any applicable per-unit value cap must be checked together, since both can determine the final RoDTEP credit.

RoDTEP and Duty Drawback can both be claimed on the same shipping bill, because the two schemes rebate different things rather than competing for the same benefit.

Where most of an exporter's cost recovery would come from customs duty paid on imported inputs, Duty Drawback becomes the more relevant scheme of the two. Exporters relying heavily on imported inputs should weigh both schemes rather than optimising for just one.

How To Claim RoDTEP Scheme: A Step-by-Step Guide

Claiming RoDTEP benefits involves a series of steps, starting with declaring the scheme in the shipping bill and ending with generating the e-scrip. Here is how the RoDTEP claim process works:

Step 1: Declare RoDTEP in the shipping bill

When filing the electronic shipping bill, explicitly select the RoDTEP scheme code for each eligible item. This declaration activates the benefit and cannot be added once the Export General Manifest is filed.

Step 2: Customs processes the claim after EGM

Once the carrier files the Export General Manifest, the customs system checks the shipping bill for RoDTEP eligibility and computes the rebate against the notified rate and per-unit cap.

Step 3: Scroll generation on ICEGATE

After verification, customs generates a scroll listing all eligible shipping bills and the admissible RoDTEP amount for each. This scroll uploads to the exporter's ICEGATE account, tagged to their IEC, confirming the benefit has been approved.

Step 4: Create the RoDTEP credit ledger account

Logging into ICEGATE with a valid IEC, the exporter creates a RoDTEP credit ledger account under the e-scrip section. This is a one-time setup, a precondition for receiving any credits, and it requires a valid Class 3 Digital Signature Certificate.

Selecting the relevant scroll and shipping bills in ICEGATE moves the credit from scroll status to usable scrip status. The e-scrip then appears in the ledger, ready for use or transfer.

Step 6: Use or transfer the e-scrip

The e-scrip can offset Basic Customs Duty on the exporter's own imports at Bill of Entry filing, or it can be sold to another domestic importer with BCD liability. E-scrips can only offset BCD, not IGST, anti-dumping duty, or other import levies.

Note: The HSN code determines the rate that applies. The refund percentage follows the notified HSN code of the exported item, typically between 0.3% and 4.3% of FOB value.

Which Documents Are Needed to Claim Benefits under RoDTEP Scheme?

Claiming RoDTEP benefits requires a valid IEC, the shipping bill, an eBRC, and a DSC. ICEGATE registration, export invoice and packing list, bill of lading, EDI registration, and GST returns where applicable complete the list.

The RoDTEP Annual Return, officially Appendix 4RR, is a mandatory yearly compliance filing submitted on the DGFT portal. It reconciles the e-scrips an exporter earned during the year against their actual factory expenses.

What the ARR covers, the ₹50 lakh rule

The return covers production and export values; meaning total units manufactured, quantities exported, and FOB value realised. It also needs an input tax breakdown, line-by-line consumption data for raw materials, electricity, and fuels, including the specific un-refunded tax paid on each. A final comparison then demonstrates to DGFT that the cumulative embedded tax value matches or justifies the e-scrips collected.

Missing the deadline causes ICEGATE to automatically suspend scroll generation, freezing all pending and future RoDTEP claims at the port until compliance is restored. A composition fee also applies for late filing. DGFT has set this fee at different amounts across recent extension notices, so confirming the current figure directly with DGFT is worth doing before assuming a specific number. Raw material bills, fuel logs, and utility records also need preserving for 5 years from the filing date, in case of risk-based scrutiny.

Consider an Indian garment exporter shipping USD 15,000 worth of readymade garments to a buyer in the US. If the applicable exchange rate is approximately ₹83 per USD, the shipment has an illustrative FOB value of ₹12,45,000.

Assume the product's applicable RoDTEP rate is 0.5%. The actual rate must be checked against the product's exact HS code and the prevailing RoDTEP schedule.

RoDTEP credit = 0.5% × ₹12,45,000 = ₹6,225.

Once the eligible RoDTEP amount is available in the exporter's ICEGATE ledger, the exporter can generate the e-scrip. If the exporter later imports a textile machinery part carrying ₹6,225 in Basic Customs Duty (BCD), the e-scrip can be used to pay that BCD, thereby reducing the cash duty outflow by ₹6,225. ICEGATE confirms that RoDTEP e-scrips can be used for BCD on imports.

For a larger example, suppose a mid-sized textile exporter records ₹10 crore in annual FOB exports and the applicable average RoDTEP rate across its products is 1.2%. The resulting credit would be approximately ₹12 lakh. If the exporter later has a ₹12 lakh BCD liability on an eligible machinery import and has sufficient valid e-scrip credit available, that credit could cover the BCD liability.

The basic RoDTEP cycle is therefore:

Export goods &gt; declare RoDTEP in the shipping bill &gt; eligible credit becomes available on ICEGATE &gt; generate the e-scrip &gt; use or transfer the e-scrip.

Note: The 0.5% and 1.2% rates above are illustrative. RoDTEP rates are product- and HS-code-specific. The applicable rate and any per-unit cap should always be checked before calculating the expected credit.

What Are The Common Mistakes While Claiming RoDTEP Scheme and How to Fix Them?

The most common RoDTEP mistakes revolve around skipping the declaration step, mapping the wrong HS code, letting data mismatch across documents and assuming e-scrips cover more than they actually do.

How Does Skydo Help Receive International Payments?

RoDTEP benefits depend on proper export documentation and realisation of export proceeds. Receiving international payments through a compliant channel and maintaining the required FIRA and eBRC records can help exporters keep their export documentation in order and support their incentive claims.

<a href="https://www.skydo.com/">Skydo</a> is a cross-border payment aggregator that helps Indian goods exporters, freelancers and Amazon sellers receive international payments. It is designed for receiving money from abroad rather than sending international payments.

Skydo provides virtual receiving accounts in USD, EUR, GBP, SGD, AUD and CAD, with account setup taking about 5 minutes and no monthly fees. Its pricing is transaction-based:

Skydo also uses live FX rates with zero FX margin. Every transaction includes an automatically generated FIRA (Foreign Inward Remittance Advice), giving exporters a digital record of the foreign payment received.

For eligible exporters, Skydo also supports eBRC generation by linking the Directorate General of Foreign Trade (DGFT) account, bulk-uploading shipping bills and matching IRMs with the relevant export records. This reduces the manual work involved in reconciling export payments with shipping bills.

Skydo also provides EDPMS closure assistance, helping exporters manage the documentation associated with export proceeds without relying entirely on manual bank follow-ups.

Payments are settled within 24 hours, with real-time payment tracking so exporters can monitor the status of their transactions. Skydo also offers India-based customer support through multiple channels, thereby giving exporters a local support option when they need help with payment or compliance-related issues.

large_Skydo alternatives

medium_Skydo alternatives

small_Skydo alternatives

thumbnail_Skydo alternatives

Skydo alternatives

What Are IEC Code Charges for Registration?

IEC code charges are the fees you pay to get an <a href="https://www.skydo.com/blog/iec-code">Import Export Code</a> from the Directorate General of Foreign Trade, or DGFT. The IEC is a 10-digit number that works as your business's license to import or export goods and services from India. Without it, your shipment won't clear customs, and your bank can't process an export payment.

The government fee for a new IEC is ₹500. You pay it online on the official DGFT portal (<a href="http://dgft.gov.in">dgft.gov.in</a>), and it's the same ₹500 whether you're a small home exporter or a large trading company, and whether you import, export, or both.

Suppose you run a handloom business in Bhagalpur, and you've just landed your first order from a buyer in Germany. To ship it out and get paid, you need an IEC. Your cost to the government for that code is ₹500, no matter how big or small that first order is.

There are a few other charges you might run into, but they're situational:

IEC Code Registration Charges &amp; Fees: A Full Breakdown

Your total IEC cost depends entirely on how you apply. Do it yourself on the DGFT portal, and you'll pay ₹500. Hand it to a professional service, and you're looking at anywhere from ₹1,500 to ₹5,000 or more, once you add their fee, GST, and a DSC if they insist on one.

A few of these rows deserve a closer look.

Are There Any Hidden Charges for IEC Code Registration?

Applied directly on the DGFT portal, an IEC has no hidden charges. The ₹500 is the full government cost for a new registration, and the portal shows you exactly what you're paying before you confirm.

Hidden costs show up when a third party sits between you and the portal. That's where you might see line items for documentation, consultancy, DSC procurement, or priority processing that DGFT itself doesn't charge for. Some agencies also add 18% GST on their service fee, which is legitimate, though it should be shown clearly rather than buried in a lump sum.

Two official charges do catch people off guard, even though they aren't hidden. A modification to your IEC costs ₹200, and a duplicate certificate costs another ₹200. First-time applicants rarely think about these until they need to change a bank detail or an address months later.

If you want to keep your cost to the ₹500 minimum, three habits help:

How to Pay IEC Code Registration Fees Online on the DGFT Portal?

You pay the IEC fee online on the DGFT portal using net banking, a debit or credit card, or UPI. It all happens inside the same application flow, so there's no separate payment site to visit.

Here's how the payment fits into the application, step by step:

Payments are processed through the BharatKosh government gateway, so the funds go directly to DGFT. The fee is ₹500 for a new application and ₹200 for a modification. Once you've submitted, DGFT usually processes and approves the IEC within one to three working days.

What Is the Refund Policy for IEC Code Charges?

The ₹500 IEC fee is non-refundable once you've paid it. Even if DGFT rejects your application, cancels it, or turns it down due to an error, that money stays with the government, and you have to pay again to reapply.

When you lose the fee: a rejection due to the wrong PAN, a document mismatch, or a mistake in the form means the ₹500 is forfeited. There is no appeal for the fee itself. You fix the error, resubmit, and pay a fresh ₹500.

When a refund is possible: DGFT considers refunds only in narrow cases, such as a duplicate payment, an excess amount paid by mistake, or a payment that went through without any application being started.

To claim one of those eligible refunds, file an online request through the e-Refund Management Process on the DGFT portal, with your transaction reference number and proof of payment. If DGFT verifies it, the extra amount is either refunded or adjusted against a future IEC application.

You can bring your IEC cost down to just ₹500, the government fee, by applying yourself on the DGFT portal and using Aadhaar e-sign instead of buying a Digital Signature Certificate. Everything above ₹500 is optional, so reducing your cost is mostly about skipping the extras you don't need.

There's no renewal fee for an IEC. Once DGFT issues it, the code is valid for life. It doesn't expire, and you never re-register or pay to keep it.

There is one yearly task, though, and it trips people up because it sounds like a<a href="https://www.skydo.com/blog/iec-renewal"> renewal</a>. Between April 1 and June 30 every year, DGFT requires a free electronic update in which you log in and confirm that your IEC details are current. You do it even if nothing about your business has changed. Think of it as ticking a box to say the IEC is still in use.

Miss that window and DGFT can mark your IEC inactive. A deactivated code can't be used for import or export, so a shipment can get stuck at customs or a payment can stall until you reactivate it. The update takes a few minutes, so it's worth putting a reminder in your calendar for early April.

What Are the Next Steps After Paying IEC Code Charges?

After you've paid the ₹500, the immediate steps are to complete the application submission, download your receipt, wait 1 to 3 working days for DGFT to verify it, and then download your issued IEC certificate. Getting the certificate is really the start, not the finish. A few things need to happen before you can trade and get paid.

Say your IEC gets approved on a Tuesday. By Wednesday you've registered on ICEGATE and emailed your bank to map the code. By the time your first shipment leaves, the paperwork side is done, and the only thing left is making sure the payment from your buyer actually reaches you cleanly.

How Does Skydo Help Exporters Receive Foreign Payments After IEC?

An IEC gives you the legal right to export. It doesn't tell you how to collect the foreign currency your buyer sends, and that's where many first-time exporters lose money without realizing it. This is the gap Skydo fills.

Traditional bank wires can quietly eat up to 8% of an international payment through forex markup and wire charges, so the amount that lands in your account is smaller than what your buyer sent. Skydo replaces that with a flat, predictable fee: ₹19 for payments under $2,000, ₹29 for payments between $2,000 and $10,000, and 0.3% above $10,000. No monthly fee, no surprise deductions.

Setup takes about 5 minutes, with no branch visit and no relationship manager calls. → <a href="https://www.skydo.com/">https://www.skydo.com/</a>

Growing Global

Staying Compliant blogs