As India has seen a steep downfall in the export value from April 2020, the Government has reduced the tax burden on Indian exporters by implementing Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to boost exports.
“The RoDTEP scheme aims to refund currently un-refunded duties/taxes/levies at the Central, State and local level, borne on the exported product, including prior stage cumulative indirect taxes on goods and services used in the manufacturing of the exported products. However, if RODTEP is not specifically claimed in the shipping bill, no RoDTEP would accrue to the exporter. RoDTEP rates will be notified as per the RITC Code and therefore, there will be no need to declare any separate code or schedule serial number for RoDTEP. Also the tax assessment will become fully automatic for exporters which will bring more transparency and make taxation smoother. Besides, the scheme will make Indian products cost-competitive in the international market,” explained Hans Raj Chugh, FCA, FCS and partner, ASHM & Associates.