RoDTEP Scheme Guidelines and Rates: The Centre has recently notified RoDTEP Scheme Guidelines and Rates.
Note: RoDTEP stands for Remission of Duties and Taxes on Exported Products.
- This scheme for zero-rating of exports will help in boosting India’s exports and competitiveness across the global markets.
- The rates of RoDTEP will cover 8555 tariff lines.
- Rates under the RoDTEP scheme for different sectors have been set as 0.5 percent, 2.5 percent, and 4 percent.
- It will come into effect from January 1, 2021.
Scheme’s objective is to refund, currently un-refunded:
- Duties/ taxes/ levies, at the Central, State & local level, borne on the exported product, including prior stage cumulative indirect taxes on goods & services used in the production of the exported product.
- Such indirect Duties/ taxes/ levies in respect of the distribution of exported products.
- However, it should be noted that rebates under the Scheme shall not be available in respect of duties and taxes already exempted or remitted, or credited.
- Export-centric industries are being reformed and introduced to better mechanisms so as to increase their competitiveness, boost exports, generate employment and contribute to the overall economy.
About RoDTEP Scheme:
- RoDTEP is one such reform that is based on the globally accepted principle.
- As per the principles, taxes and duties should not be exported, and taxes and levies are borne on the exported products should be either exempted or remitted to exporters.
- Under the RoDTEP scheme, duties, taxes and levies are charged on exported products at state and local levels.
- It refunds the prior stage cumulative indirect taxes on goods as well as services used in the production of the exported product and their distribution.
- Rebate will not apply to duties and taxes that are already exempted, remitted, or credited.
- RoDTEP support will be available for eligible exporters as a percentage of Freight on Board (FOB) value.
- Rebate on some export products will be subject to a value cap per unit of the exported product.
- This scheme will be implemented by Customs with the help of a simplified IT System.
- Ministry will issue rebates in the form of transferable duty credit or electronic scrip (e-scrip).
- It will be maintained by the Central Board of Indirect Taxes and Customs (CBIC) in an electronic ledger.
- RoDTEP is going to give a boost to Indian exports by providing a level playing field to domestic industry abroad.
- The Ministry of Finance (MoF) will finalize the overall outlay of the RoDTEP scheme in consultation with the Department of Commerce.
- The Ministry will take into account all the factors before finalizing it.