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Introduction:
On 14 September 2019, the Government of India (GOI) announced the Remission of Duties and Taxes on Exported Goods (RoDTEP) scheme to replace the existing Merchandise Exports from India Scheme (MEIS) and establish a completely automated GST Input Tax Credit (ITC) path to nicely boost India’s exports. It was initially to be announced from April 2020 onwards, however, agreed to continue to allow the benefit until 31.12.2020 under MEIS & RoSCTL. Therefore, with effect from 1 January 2021, the value of the scheme on all export goods has been extended.
The scheme includes all industry sectors, including textiles. This scheme offers for the rebate of duties and taxes that were not earlier provided, such as local taxes, coal cessation, mandi duty, electricity duties, and transportation fuel. However, the rebate programme only allows for exports of goods, while the rebate for services would be covered under the current SEIS scheme (Service Export from India Scheme).
The reimbursement of duties and taxes (like VAT, mandi fee, and central fuel excise, etc.) imposed at central, state and local level is protected by RoDTEP and is not offered to refund by any other scheme. In addition, elements currently protected by the MEIS and RoSCTL schemes will be transferred to the scheme for RoDTEP.
More read : GST Return compliances calendar- Nov 2020
Reimbursement will be issued to exporters in line with Digital India in the form of transferable duty credits and electronic scripts that are maintained in a digital ledger.
A monitoring and audit system with a risk management system focused on information technology will be placed in order to physically check the exporters’ records. This will enable rapid digital platform clearance.
RoDTEP includes all sectors, including the textile industry. Furthermore, the sequence of implementation of the scheme across sectors, prioritisation of sectors and the degree of benefit to be provided to different products shall be determined by the dedicated committee.
in the present situation, users can log into their ICEGATE account & make a the RoDEP Credit Ledger A/c, as scrip creation provision will be made functional on the issuance corresponding notification by the department and availability of the budget. Implementation of the scheme in Custom Automated System has been developed.
Conclusion:
In the present Covid-19 Pandemic, where export growth is declining and industries are already facing uncertainty and decline, the government must support export-oriented industries so that they can survive. Only such incentives are available for Indian exporters to tap into the international market under the current RoDTEP scheme. The efficient and effective implementation of RoDTEP will greatly enhance the current expectations of the export industry which have been different.
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