This Tax Alert summarizes a recent Press Release1 issued by the Government on implementation of Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
As per the press release, effective 1 January 2021, the benefit under RoDTEP scheme shall be allowed on all export goods. The scheme will refund the embedded central, state and local duties/ taxes that were so far not being rebated/ refunded. The rates in this regard will be notified shortly.
Earlier, the Cabinet had approved the scheme in March 2020.2
The claim amount will be available to the exporter as credits on ICEGATE portal. The exporter will be able to club the credits allowed for any number of shipping bills at a port and generate credit scrip for the same. Such scrip can be either used to pay basic customs duty or transferred to other importers.
Further, necessary changes have been made in the Customs Automated System to accept and process the claims. Exporter will be required to indicate in the shipping bill his intent to claim the benefit of RoDTEP in respect of each export item. RoDTEP shall be allowed subject to fulfilment of certain conditions and exclusions as may be notified.
Unless the declaration is specifically made in the shipping bill, no benefit will accrue to the exporter. Once the rates are notified, the system would automatically calculate the claim amount for all the items where the declaration is made. No changes in the claim will be allowed after filing of export general manifest.
A detailed advisory for the benefit of the exporter on the scrip generation, ledger maintenance and transfer facilities will be published soon on ICEGATE.
The industry would now look forward to early notification of the RoDTEP rates.
[1]. Press release dated 31 December 2020
[2]. Refer EY Tax Alert dated 16 March 2020
