RODTEP Scheme PDF

The RODTEP Scheme, or the Scheme for Remission of Duties and Taxes on Exported Products, was approved by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi. This important initiative aims to create a new way for exporters to get back taxes, duties, and levies that they have paid at central, state, and local levels, but which are not refunded under other schemes. By supporting the domestic industry and boosting Indian exports, the RODTEP Scheme helps ensure that Indian producers have a fair chance in international markets, allowing them to compete better without adding extra burdens of domestic taxes and duties.

Understanding the RODTEP Scheme

Under the RODTEP Scheme, an inter-ministerial Committee will decide the rates and items eligible for tax and duty refunds. Following the spirit of “Digital India,” refunds will be issued in the form of transferable duty credit or electronic scrips, which will be tracked in an electronic ledger system. Implementing this scheme digitally from start to finish brings transparency and efficiency to the entire process.

The refunds provided by the RODTEP scheme are aimed at achieving “zero-rating” for exports, complementing other refunds like Drawback and IGST. This strategic approach will make exported products more cost-competitive in global markets and create better job opportunities in industries focused on exports. To align with the Prime Minister’s vision, various export-oriented sectors are undergoing reforms and improvements that will enhance productivity and contribute positively to the economy.

Salient Features of the RODTEP Scheme:

• At present, GST taxes and customs duties on inputs for manufacturing exported products are either exempt or refunded. However, certain duties such as VAT on fuel used in transport, Mandi tax, and electricity duties during manufacturing fall outside GST and do not get refunded. The RODTEP Scheme will cover these for reimbursement.
• The Department of Commerce (DoC) will notify the introduction sequence of the Scheme across various sectors, prioritizing which sectors to include and how much benefit each item will receive within the Committee’s set rates.
• Rebates will be claimed as a percentage of the Freight On Board (FOB) value for exports. A robust monitoring and audit mechanism, aided by an Information Technology-based Risk Management System (RMS), will verify exporters’ records. Once the rates under the RODTEP Scheme are announced for specific items, benefits from the Merchandise Exports from India Scheme (MEIS) for those items will end.

Download the RODTEP Scheme in PDF format using the link given below for complete details and further reading.

Also, Check – RoDTEP Scheme Rates