Everything About RoDTEP Scheme, Benefits & Eligibility

What is RoDTEP?

RoDTEP Scheme stands for Remission of Duties and Taxes on Exported Products. As the name suggests, the scheme remits the charges on duties and taxes for the exporters to facilitate them and promote international trade. This scheme was launched on January 1st, 2021, and replaced the existing MEIS scheme. 

What is it for?

This scheme’s main objective is to encourage manufacturing in India and international trade by providing numerous incentives to the manufacturers or merchants who create products in the country and export them globally. The scheme reimburses the duties and taxes for this trade which was not reimbursable before. 

Who is it for?

An exporter. Can be a manufacturer or a merchant exporter. But this scheme is for exporters who create products in India, manufacture them, and ship them globally contributing to the growth of our economy and promoting international trade.

Also Read: Capital Gains Tax – Everything About LTCG & STCG Tax In India

How To Apply For RoDTEP scheme?

To subscribe to the new RoDTEP is very simple and as it is fully automated, the experience of this for the exporter is seamless, fast, and secured. He doesn’t have to go office to office carrying tons of documents and claiming reimbursement. 

1. Ensure that the exporter is to manufacture the goods in India. 
2. To claim the reimbursement via this scheme, the exporter has to claim for this scheme in the shipping bill – making a declaration for this reimbursement beforehand
3. The Department of customs takes over to verify the claim. Post verification, the claim is processed. All this is regulated by the department of customs. 
4. Once the claim is verified and is processed, a ledger will be generated with the respective amount and the user can see it at his end on the platform
5. The users can then access this information via the platform and also get refined in very simple steps. 

Also Read: Tax Collected At Source (TCS) – Everything You Need To Know

RoDTEP Scheme Benefits

While the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by design provides benefits of duties and taxes, it also has various other benefits that a business owner or an exporter ought to be aware of as it creates immense value for their businesses. Here are some important RoDTEP scheme benefits:

1. Reimbursable Taxes and Duties

This is the core benefit of the RoDTEP scheme, which is that all the different duties and taxes that are levied like Coat Tax, Mandi Tax, CED, Value Added Tax (VAT), etc. are now eligible for a complete reimbursement. All the categories of products that were once under the umbrella of the RoDTEP scheme and MEIS scheme will now come under the regulation and control of this attractive RoDTEP scheme. This scheme not only encourages exporters but also provides great financial flexibility and strength for them to plan, create, and export more and more products globally. 

2. Digital Credit Ecosystem that is fully tech-driven

The scheme also promotes a digital first where all the ledgers are maintained digitally and the entire process is automated. There is an electronic ledger that maintains electronic credits which are controlled and maintained, Letting go of the offline process is more cumbersome, difficult to track, and creates noise and automating the entire reimbursement process helps the system to be more smooth, streamlined, and seamless.  

3. Digital verification and tight security systems in place

This is a fully digital and automated scheme where all the documentation, verification, and confirmation happen digitally ensuring speed, accuracy, and a seamless experience for all the stakeholders. The platform takes the assistance of an IT firm that helps in verifying the document’s correctness, and integrity and also ensures that the transactions happen without any hassle. 

4. One scheme – all sectors

This scheme was not designed to promote any particular sector(s). All the sectors are eligible under this scheme for whoever wishes to create and manufacture products in India and wants to export them globally. They also formed a committee that will ensure that the scheme is integrated with their respective structures and advise them on the various incentives and benefits to get them onboard. Also, pitch them the fully automated digital process that the scheme adopted to ensure smooth and seamless transactions. 

Also Read: What Is TAN? And Its Importance In Businesses & For individual

Eligibility criteria to avail of the benefits of RoDTEP scheme

Like in any other scheme, to avail of RoDTEP scheme benefits, there are some eligibility criteria. 

1. One basic core requirement to access the scheme is that products that are exported are to be created and manufactured in India. Else, the exporter/manufacturer will not be eligible to access the scheme for their respective products. 
2. Turnover – This scheme doesn’t demand a minimum turnover requirement to be eligible. Despite the turnover figure, if you are a trader/manufacturer, you are eligible. But you should be either a merchant or a manufacturer exporter legally. 
3. Industry/Sector – This scheme doesn’t put a filter on any particular sectors. Any exporter despite the sector who exports their products are eligible to avail of complete benefits of this scheme and will be given complete tax. This is one of the key RoDTEP scheme benefits. reimbursement. Sectors that are high on manual labor are given priority over the others.
4. Ecommerce players – If you’re an e-commerce player who manufacturers in India and exports your goods globally via logistic partners, you can avail the benefits of the new scheme without needing any additional documentation or incurring additional charges.
5. SEZ/EO – Unique trading platforms like SEZs/EOs are also totally eligible for all the benefits on top of their existing schemes/perks they might be availing from others

Also Read: GSTIN: What Is GSTIN Number? – Check & Verify GSTIN/UIN Number Online?