RoDTEP stands for Remission of Duties and Taxes on Export Products. This is a new scheme that has come into effect from 1 January 2021. The scheme is designed to replace the existing MEIS (Merchandise Export from India) scheme. The scheme will ensure that exporters get refunds on embedded taxes and duties which were earlier non-recoverable. This scheme was brought with the objective of promoting exports that were relatively less in quantity earlier.
Need for the RoDTEP Scheme
- The main purpose of RoDTEP is to provide a level playing field to Indian exporters and to make their products competitive in the global market.
- America challenged India’s key export subsidy schemes in the WTO (World Trade Organisation) by claiming them to harm American workers.
- A dispute panel of the World Trade Organization has ruled against India by saying that the export subsidy program provided by the Indian government violates provisions of the trade body’s norms
- The panel recommended that the export subsidy program be withdrawn.
- To ensure that India remains WTO compliant, the government launched the RoDTEP scheme.
Features of the RoDTEP Scheme
- Mandi tax, Value-Added Tax, Coal cess, Central Excise duty on fuel, etc. will now be refunded under this RoDTEP scheme.
- All the items under the MEIS(Merchandise Exports from India) and the RoSTCL (Rebate of State and Central Taxes and Levies) are now under the purview of this Scheme.
- The objective of the RoDTEP scheme is to provide a boost to Indian exports by reimbursing the taxes and duties that are currently not being refunded under any other existing export incentive scheme.
- The rebate rate under the RoDTEP scheme is determined based on the rates of taxes and duties that are not being refunded currently. The rebate rates range from 0.5% to 4.3% of the FOB (Free on Board) value of exports.
Eligibility to Obtain Benefits of the RoDTEP Scheme
- All sectors may enjoy the benefits of the RoDTEP Scheme including the textiles sector.
- Manufacturers and merchant exporters both are eligible for the benefits of this scheme.
- There is no minimum turnover threshold to claim the RoDTEP.
- To avail of the benefits of the RoDTEP scheme, the exported products need to have the country of origin as India.
- Special Economic Zone Units and Export Oriented Units can also claim the benefits under this scheme.
- Where goods have been exported via courier through e-commerce platforms, the RoDTEP scheme also applies to them.
How to Get Benefits Under the RoDTEP Scheme
To avail of benefits under the RoDTEP Scheme, Exporters need to follow the below-mentioned steps:
- firstly, Exporters need to register themselves on the RoDTEP portal by providing their PAN, GSTN, and other relevant details.
- Exporters need to submit relevant documents such as invoices, shipping bills, and other export-related documents to the concerned authorities to claim benefits under the RoDTEP scheme.
- The concerned authorities will verify the documents submitted by the exporter and approve the claims made under the RoDTEP scheme.
- Once the claims are approved, the exporter will receive benefits under the RoDTEP scheme in the form of a credit note that can be used to pay customs duties and taxes or can be transferred to another party.
Merchandise Export from India Scheme (MEIS)
The Merchandise Export from India Scheme (MEIS) is a government initiative launched in 2015. The scheme’s objective is to promote the export of goods from India and offer incentives to Indian exporters. MEIS provides various benefits to Indian exporters in the form of duty credit scrips that can be utilized to pay for customs duty on imported goods or can be traded for cash in the market.
The Merchandise Export from India Scheme (MEIS) provides duty credit scrips to Indian exporters. These scrips are given as a percentage of the total value of exports and differ based on the product category and destination country. The duty credit scrips can be utilized by the exporters to pay for customs duty on imported goods or can be sold in the market for cash.
The MEIS scheme covers a wide range of products that are exported from India. This includes agriculture products, textiles and garments, leather and leather products, handicrafts, engineering goods, chemicals, and pharmaceuticals, among others.
MEIS Scheme vs RoDTEP Scheme
Criteria |
MEIS |
RoDTEP |
| Introduction Year | 2015 | 2021 |
| Full Form | Merchandise Export from India Scheme | Remission of Duties and Taxes on Exported Products |
| Objective | To promote exports of goods from India and to provide incentives to Indian exporters. | To provide a refund of various taxes and duties incurred by exporters at the central, state, and local levels. |
| Benefit | Duty credit scrips that can be used to pay for customs duty on imported goods or can be sold in the market for cash. | Refund of various taxes and duties incurred by exporters. |
| Issued Form | Issued in the form of physical transferable scrips. | Issued in the form of transferable duty credit or electronic scrips which will be maintained via an electronic ledger. |
Conclusion
The RoDTEP scheme is a positive step by the Indian government towards boosting exports and making Indian products more competitive in the global market.
FAQs
Q1. When did the RoDTEP scheme come into force?
RoDTEP scheme come into force on 1 January 2021.
Q2. What are the benefits of the RoDTEP scheme?
The RoDTEP scheme provides a refund of various duties and taxes to exporters, thereby making their products more competitive in the global markets. It also helps in reducing the overall cost of production and improving the cash flow of the exporters.
Q3. Who is eligible to apply for the RoDTEP Scheme?
All exporters of goods from India except pharmaceuticals, steel, organic, and inorganic chemical industries are eligible to apply for the RODTEP scheme.
Q4. What is the application process for the RoDTEP Scheme?
The application process for the RODTEP scheme is online, and exporters need to provide relevant details about their exports including shipping bills, invoices, and other required documents. The government will then verify the information and process the refund.