How the incentive rates will be determined under RoDTEP Scheme for the exporters launched by the Modi Government

The Union Cabinet approved withdrawal of MEIS Scheme (Merchandise Exports From India Scheme) and gave approval to RoDTEP Scheme which stands for Remission of Duties or taxes on the Export Products, on 13th March 2020.

MEIS scheme was launched in 2015 & came in effect from 1st April 2015, under which goods exporters can avail the incentive under 2% to 5% on the FOB value of exports, It is additional benefits and not in compliant with WTO norms, in response to the Global pressure Government of India launched RoDTEP scheme which will be implemented in a phased manner.

RoDTEP a scheme for the goods exporters to reimburse taxes and duties paid by them such as VAT, Coal cess, Electricity duties, Mandi tax, which are not refunded under any existing scheme. The Finance Minister of India had announced to allocate Rs 50,000 crore for the goods exporters under RoDTEP Scheme. 

Mr Piyush Goyal commerce and industry minister of India said RoDTEP scheme is very important for our exports to get level playing field at international level.

Aluminium Industries who are in exports of aluminium and goods manufactured from the aluminium has analysed duties and taxes paid on the exports are going upto 15% of production cost and they have urged the commerce and industry minister for 5% refund in starting and going upto 12-13% which are not refunded under any of the existing scheme.

The exporters has asked the government for the flexible fixation of RoDTEP rates for which classification of the products should done with the help of 4 Digit HS level which require less details to be filled out for determining the rates under RoDTEP Scheme.

Export Promotion Councils shall ask Data or Information in a format from Industry/firms/Exporters, and they will give the data related to un-rebated taxes, duties, levies to the Export Promotion council and will interact with DGFT Committee. There will be 3 formats – R1, R2,R3 which shall be filled for each export products by the goods exporters.

A committee formed by the Government after the CBIC orders the formation of the committee on 30th July, to determine the RoDTEP benefit rates within 3 months which shall be headed by the former Government secretary Mr GK Pillai with Gautam ray and YG Parande retired CBEC member.

Introduction sequence under RoDTEP scheme across sectors, Sectors Prioritisation covered under RoDTEP, Benefit rates for various products etc. notified by the Government after the cabinet approval. 

The committee will perform following task – 

  • Asking the views of EPCs, trade bodies, commodity board, other government authorities to determine the rates under RoDTEP.
  • Calculation of taxes on the export products.
  • Calculation of taxes/duties/levies on the goods and services used for the production.

Government of India is giving export incentive to the service exporters under SEIS Scheme of 5% to 7% on the net foreign exchange earned on the notified services given in foreign trade policy in the form of license which can be used for the payment of basic customs duty.

RoSCTL is the earlier version of RoDTEP scheme which was launched by the ministry of textiles for the readymade garments and made ups and the documents will be more or less similar to RoSCTL scheme for the online application under RoDTEP which shall include – Shipping bills, Dgft Digital signature certificate, valid copy of RCMC, e-BRC (Bank realization certificate).

RoDTEP is in comliant with WTO guidelines and may come in effect from 1st April 2021 and will be in effect till 2025.