The RoDTEP Scheme (Remission of Duties and Taxes on Exported Products) is a critical update to India's export incentive framework. It replaced the Merchandise Exports from India Scheme (MEIS) post-January 1, 2021, as previous schemes were limited by providing more comprehensive tax remission. This blog tells us about the RoDTEP Scheme, its key features, eligibility criteria, benefits, and practical steps to avail of its advantages.
Key Features of the RoDTEP Scheme
The RoDTEP Scheme comes with several notable features designed to improve its effectiveness and user experience:
- Extensive Coverage of Taxes and Duties: The RoDTEP Scheme refunds embedded taxes and duties not refunded under other existing schemes, including state-level taxes such as mandi tax, VAT, and central excise duties on fuel used for transportation and power generation.
- Automated Credit Issuance: The refund is issued via transferable electronic scrips. These scrips can be used to pay customs duties or transferred to other importers, and they are tracked through an electronic ledger on the ICEGATE platform.
- Quick Verification and Processing: The system is designed for speed and accuracy, using an IT-based risk management system that allows for fast clearance of records and the quick refund of duties.
- Coverage Across Sectors: The scheme applies to all sectors, including labor-intensive sectors like textiles, agriculture, and leather. A committee oversees the degree of benefit each sector receives, ensuring fair and equitable distribution of benefits.
- Incentive Rates: The government notified the rates under RoDTEP for different sectors on 17 August 2021, ranging from 0.5% to 4%, depending on the product category. Exporters should stay updated on these rates to maximize their benefits.
Eligibility Requirements for the RoDTEP Scheme
To qualify for the benefits under the RoDTEP Scheme, exporters must meet certain criteria:
- Registration: Exporters must be registered with the Directorate General of Foreign Trade (DGFT) and possess a valid Importer Exporter Code (IEC).
- GST Compliance: Exporters need to be compliant with Goods and Services Tax (GST) regulations and must have a valid GST number.
- Documentation: Applicants must provide necessary documents such as shipping bills, proof of export, and other relevant records to substantiate their claims.
- Product Categories: The scheme applies to specific product categories as notified by the government. Exporters must ensure their products are listed within these categories to be eligible for benefits.
How to Avail Benefits under the RoDTEP Scheme
Claiming benefits under the RoDTEP Scheme involves a series of steps:
- Submit Application: Exporters must file their applications through the DGFT online portal, including details about their export transactions and corresponding shipping bills.
- Provide Necessary Documents: Required documentation includes shipping bills, GST compliance certificates, and proof of export.
- Verification and Processing: The submitted application is verified by the relevant authorities. Upon successful verification, the benefits are processed and credited to the exporter’s account.
- Utilize the Benefits: The benefits are applied as a remission of the duties and taxes, helping to reduce the overall cost of exported goods.
RoDTEP Scheme Guidelines
How to Apply for RoDTEP Benefits
To apply for RoDTEP benefits, exporters should follow these guidelines:
Registration with DGFT: Ensure that you are registered with the DGFT and have an active Importer Exporter Code (IEC).
GST Compliance: Confirm that your GST registration is up-to-date and that you comply with all GST requirements.
Application Process: Log into the DGFT online portal and submit your application, including all necessary details about your exports.
Documentation Submission: Attach all required documents, such as shipping bills and proof of export, to your application.
Await Verification: After submission, your application will be reviewed by the authorities. If approved, the benefits will be credited to your account.