Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme
The Export Duty Remission and Tax (RoDTEP) is a new scheme that was implemented since 1st January 2020, replacing the former Indian Merchandise Exports (MEIS).
Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme
The Export Duty Remission and Tax (RoDTEP) is a new scheme that was implemented since 1st January 2020, replacing the former Indian Merchandise Exports (MEIS). Ites are phased in with the proper monitoring and auditing mechanism from MEIS to RoDTEP.
Merchandise Exports from India Scheme (MEIS): With impact from 1 April 2015 to reduce infrastructural inefficiencies and related costs in connection with exports of products produced in India, MEIS was implemented into the 2015-20 foreign trade policy (FTP).
Objective:
- The aim of the new RoDTEP scheme is to competitively reduce Indian exporters' costs and build an equal playing field.
- RoDTEP system is a WTO-compliant.
- In conjunction with this scheme, a mechanism will be formed to reimburse federal, state and municipal taxes / taxes, which until now have not been reimbursed by any other mechanism, but which are being incurred in the production and marketing phase of export products.
- The scheme will also boost the production of jobs in different sectors.
- Under the law, the rates and products for which taxes and duties are reimbursed shall be decided by an Inter-ministerial Committee.
- Under the scheme, refund under 'Digital India' will be issued to exporters as the transferable duty credit/electronic script, which will be kept in an electronic directory. At the introduction of digitisation, the scheme will be enforced.
- The RoDTEP refunds will mark an improvement in export 'zero scores' alongside refunds like Drawback and the IGST. This scheme enables Indian exporters to meet the international export requirements, providing exporters in the country with affordable tests and certification. It will allow for the automatic refund of the tax assessment and refunds. It raises the company's productivity and working capital.
WTO compliant: RoDTEP aims at covering central and state indirect taxes that were not previously reimbursed in compliance with the WTO rules that require indirect taxes to be reimbursed. This is also a World Trade Organization system that is reliable. The scheme gives SMEs and small and medium-sized enterprises a considerable boost by implementing a productive process that complies with WTO rules.
RoDTEP is one of the many Government's steps towards reforming export oriented industries and implementing better mechanisms to boost productivity, promote exports and contribute to the economy as a whole.
