Remission of Duties and Taxes on Exported Products (RoDTEP) scheme
Why in news?
Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is extended by the central government until March 31, 2026.
Key Features of the RoDTEP Scheme
- Replaces the earlier Merchandise Exports from India Scheme (MEIS) which was found incompatible with WTO norms.
- Provides refunds on embedded taxes and duties like mandi tax, VAT, coal cess, central excise duty on fuel, etc.
- Refunds are issued as transferable electronic duty credit scrips, maintained digitally through an electronic ledger by the Central Board of Indirect Taxes & Customs (CBIC).
- Applies uniformly across all sectors, including textiles, and covers exports from SEZs, EOUs, and other special entities.
- The electronic scrips can be used to pay basic customs duties or can be transferred to other importers.
Need and Purpose
- The scheme was designed in response to a WTO dispute panel ruling that India's earlier export subsidy programs violated WTO rules.
- The RoDTEP scheme is WTO-compliant and helps compensate exporters for indirect taxes incurred during production and distribution, which are not refunded otherwise.
- It supports India’s export ecosystem by reducing the cost disadvantages faced by exporters due to embedded taxes.
Administration and Operation
- Claims for RoDTEP benefits are made by exporters in the shipping bill at the time of export.
- The duty credits are credited to the exporter's ledger account electronically through the ICEGATE portal.
- A dedicated committee under the Department of Revenue manages the scheme and recommends rates and coverage.
The government has extended the scheme multiple times and allocated significant budgets to support exporters under RoDTEP. It has become a critical tool in India’s export policy, ensuring both competitiveness and WTO compliance.
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