RoDTEP (Remission of Duties or Taxes on Export Products) is a Scheme for the Exporters to make Indian products cost-competitive and create a level playing field for them in the Global Market.
RoDTEP Scheme will replace the current MEIS scheme, which is not in compliance with WTO norms and rules.
The new RoDTEP Scheme is fully WTO compliant scheme. It will reimburse all the taxes/duties/levies being charged at the Central/State/Local level which are not currently refunded under any of the existing schemes but are incurred at the manufacturing and distribution process.
Below is a diagram showing the history of export promotion schemes, for a better understanding of their evolution.
Currently, only the GST and the import customs duties levied on inputs required for the manufacturing of export products are either exempted or refunded in some or the other way.
Input tax credit (ITC) of GST paid is available, and also if exported on payment of duty then IGST refund can be claimed.
Import Custom duties on raw materials are exempted through the Advance Authorization scheme or refunded through the Duty Drawback scheme.
However, still, there are many duties and taxes levied by the Central and State Government which are not refunded. It adds up to the final cost of resultant products
And makes Indian products uncompetitive in the global market.
The new RoDTEP Scheme is similar to the existing RoSCTL Scheme (Rebate of State and Central Taxes and levies), or we can also say that RoSCTL is the earlier version of RoDTEP.The existing RoSCTL Scheme is only for the made-ups & apparel sectors.
The application will be made under RoDTEP as we are doing for RoSCTL. An application shall be filed online using Class 3 Individual type Digital signature Certificate on ICEGate website (https://www.icegate.gov.in/). Relevant Shipping bills shall be linked with the online application by the Exporter/Applicant.
The refund under RoDTEP Scheme would be in the form of duty credit which will be transferable, or it may be in the form of electronic scrip which will be maintained in the electronic ledger.
The implementation of the process will be done with the help of end to end digitization.