RoDTEP Scheme for Export Promotion Excludes Steel
RoDTEP Cogoport

RoDTEP Scheme for Export Promotion Excludes Steel

Indian government has set aside INR 12,454 crore for refunds under the Remission of Duties and Taxes on Exported Products scheme for

Indian government has set aside INR 12,454 crore for refunds under the Remission of Duties and Taxes on Exported Products scheme for 8,555 products for the current fiscal. Under the RoDTEP, various central and state duties, taxes, and levies imposed on input products, among others, would be refunded to exporters. The reimbursement of taxes such as duty on power charges, VAT on fuel in transportation, farm sector, captive power generation, mandi tax, stamp duty and central excise duty on fuel used in transportation would make Indian products competitive in global markets. However three sectors of steel, chemicals and pharmaceuticals would not get the benefit of RoDTEP as they have done well without incentives.

INR 19,400 crore would be available for 2021-22 for both the RoDTEP and the Rebate of State and Central Taxes and Levies. The RoSCTL scheme was announced for the export of garments and apparels. For the RoDTEP scheme, the amount is INR 12,454 crore and the remaining INR 6,946 crore for RoSCTL.

The government announced the RoDTEP scheme in March last year. It was to come into effect from January 1 this year and the rates have been finally notified after seven-and-a-half months in August 2021.

RoDTEP support will be available to eligible exporters at a notified rate as a percentage of Freight On Board value. Rebates on certain export products will also be subject to value cap per unit of the exported product. It will be implemented by Customs through a simplified IT System. Rebates will be issued in the form of a transferable duty credit/ electronic scrip (e-scrip) which will be maintained in an electronic ledger by the Central Board of Indirect Taxes and Customs

Related Stories

No stories found.
SteelGuru Business News
www.steelguru.com