Remission of Duties & Taxes on

Exported Products (RoDTEP) Scheme

Dr Ajay Sahai
Director General & CEO, FIEO
2 Customs Duties

 Basic custom duty

 Additional customs duty(Only on goods subject to Central
Excise Duty)
 10% social welfare surcharge
 Anti-dumping duty
 Safeguard duty
 Countervailing duty
 IGST *
Mechanism of Refund: All Industry Drawback , Brand rate of
Drawback, EOU, SEZ , Advance Authorisation , DFIA etc
3
Central (Duties and Taxes) merged under GST:

 Central Excise Duty (including Additional Excise Duty) – Central

Excise was a duty imposed on the manufacturing of goods in India.
 Service Tax – Service Tax was a tax which was levied by the
government on the services provided wherein the service provider
collects the tax from service receiver and pays to the Government.
 Additional Customs Duty – It was a duty equivalent to Central Excise
Duty which was imposed on manufacturing
 Special Additional Duty of Customs – It was payable at 4% on the
goods imported and this is instead of VAT/ Sales Tax.
 Central Surcharges and Cess – Surcharge was a charge on tax and as
the name suggests, it is an additional charge. Cess was imposed by
central government and is levied for specific purpose.
4 State (Duties and Taxes) merged under GST:
 Value Added Tax (VAT) – Tax on the goods and services that were provided at the
state level. Imposed at each stage in the chain of distribution and production
 Central Sales Tax – CST levied on inter-state trade
 Octroi & Entry Tax – Octroi charged by the local/ municipal authority and Entry Tax
by State.
 Purchase Tax – Purchase tax imposed on the purchase of goods by the State.
 Luxury Tax – A Luxury Tax was levied on articles that are either expensive or
optional
 Taxes on lottery, betting and gambling – Tax which was imposed on Lottery
winnings, Gambling and Betting calculated.
 Entertainment Tax – Entertainment Tax was a tax levied by the government on
things related to entertainment like : movie tickets, commercial shows, etc
Mechanism of Refund for CGST, SGST ,IGST: (i)IGST Refund or (ii)ITC Refund
5
What is not covered for refund under
GST ?
 Alcoholic liquor for human consumption
 Five petroleum products namely crude petroleum, high
speed diesel, motor spirit or petrol, aviation turbine fuel
and natural gas were presently kept out of GST. But may be
brought in from a future date.
 Neither Goods nor services: Sale of land or building ;
Employee Employer, Court Services, Services by
Legislatures, Funeral Services etc
 Goods and services exempted from GST
 6
RoDTEP Principle

Refund currently un-refunded

 Duties/taxes/levies at the Central, State and Local level, borne on the

exported product
 Prior stage cumulative indirect taxes on goods and services used in the
production of the exported product
 Such indirect duties/taxes/levies on distribution of exported product.
7
What is meant by embedded taxes ?

 Prior stage taxes which are not allowed to be off-set (adjusted)

and thus become part of the product/services

 GST on inputs used in the final product, which is exempted

 GST on inputs used in the final product , which is not covered
under GST
 GST on inputs purchased from unregistered suppliers used in the
final product under GST
 Central Excise Duty/VAT on inputs used in the final product
under GST or in transportation of goods
 Other cess / taxes etc (not under GST) on inputs used in the final
product under GST
8 Taxes not refunded under present mechanism
VAT on fuel used in generation of captive power
VAT on fuel used in farm sector [for products only]
Mandi Tax
Duty on electricity charges
Stamp duty on export documents
Embedded SGST paid on inputs such as pesticides, fertilizers ect. Used in production of
agricultural goods
Embedded SGST in purchases from unregistered dealers
Embedded SGST on coal used in production of electricity
Embedded SGST on inputs for transport sector
Central Excise on duty on fuel used in transport
Embedded CGST paid on inputs such as pesticides, fertilizer ect. Used in production of raw
materials
Embedded CGST in purchases from unregistered dealers
Embedded CGST and compensation cess on coal used in production of electricity
Embedded CGST on inputs for transport sector
Any other Taxes/ Duties/ Levies, which are not refunded/ exempted/ reimbursed under any
of the prevalent mechanisms, such as Advance authorization, drawback and GST refund-
please specify with justification
9 RoDTEP Scheme
 Made operational from 1st of January, 2021 through press release
and Advisory by Ministry of Finance(MOF) though the rates are
still to be announced.
 Notifications from DGFT and MOF still awaited
 Coverage of products : Will be known only when the rates are
notified or ineligible exports list is notified .
 No separate Code or Serial Number needed. RITC code given in
the shipping bill will suffice.
 Ineligible categories : Exports by EOUs, Advance Authorisation ,
Jobbing etc. Certain ineligible categories for MEIS may also be
brought under the ineligible goods for RODTEP.
10 RoDTEP Scheme (Contd…)

 The declaration on the shipping bill needed to claim RODTEP.

 INFO TYPE = DTY
 INFO QFR = RDT
 INFO CODE = RODTEPY - If RoDTEP is availed ; RODTEPN - if not availed.
 Additionally, for every item where RODTEPY is claimed in INFO CODE, a
declaration has to be submitted in the Statement Table of the Shipping Bill
 STATEMENT TYPE = DEC
 STATEMENT CODE = RD001
Submission of the above statement code for RoDTEP availed items would
indicate that the exporter has made the necessary declaration as
enclosed in Annexure B, while claiming RoDTEP benefit.
No change in the claim after filing of EGM
11 RoDTEP Scheme (Contd…)

 Shipping bills are sent to RMS after EGM filed

 If cleared, shipping bill is queued for scroll. Else, it will come back to
officer for further details.
 Once the officer clear the shipping bill, it will be queued for scroll.
 Once the scroll is generated, the respective amounts would be
available with the exporter, registered with the Icegate with their
digital signature, as credit for converting into a credit scrip, provided
exporter has created a RoDTEP (credit ledger) account.
 Once the RoDTEP rates are notified, system will automatically calculate
rates for all the items in the shipping bills on which RoDTEP was
claimed.
12
Creation of RoDTEP (Credit Ledger) Account
 Visit the website of Icegate www.icegate.gov.in
 Go through the details “Our Services” on the main page book
 Choose RoDTEP in the “Our Service” bouquet
 You will be directed to the Login page
 After login with valid credentials, you will see the credit ledger on the left
panel (if not registered, you have to registered yourself with DSC through the
link https://icegate.gov.in/Download/JawaSetupForDSC.pdf)
 The user should select the name from the dropdown menu as RoDTEP
 At present, facility upto creation of RoDTEP Credit Ledger Account is only
opened
 Once the rates are notified and detailed guidelines issues, exporters will be
able to see the scroll details and by selecting the shipping bill can generate
scrip which can be transacted online.
13 Complete Electronic Environment for RoDTEP

 After credit ledger account is created, a grid view of

following details will be displayed :-
 Scroll details
 Scrip details
 Transaction details
 Transfer scrip
 Approved transfer scrip
14 Complete Electronic Environment for RoDTEP
(Contd….)

Scroll Details:
 Once scroll details tab is clicked, user can select scheme and
location.
 Once the scheme RoDTEP and location of a particular port is
selected, the details of shipping bill number, date, scroll number,
scroll date and sanctioned amount would appear.
 The user can select the shipping bill(s) and can generate the
scrip.
 Upon generation of the scrip, a message that “Scrip number-------
has been generated successfully “ would appear.
15 Complete Electronic Environment for RoDTEP
(Contd….)

View Details:
 In the viewing scrip detail, user can see :
 Active - Scrip which is still in active state
 Utilize – Scrip which is utilised by the user
 Transferred – Scrip for which transfer request is approved by the
transferee to whom user has initiated the transfer
 Transfer pending – Scrip which is transferred by the user to another IEC
holder but the latter has not approved the transfer request
 Expired – Scrip which is expired
 Transfer rejected – Scrip which is rejected by the transferer (who has
initiated the scrip transfer request) or the transferee (to whom scrip
transfer request is sent)
 All – All scrips generated
16 Complete Electronic Environment for RoDTEP
(Contd….)

Transaction Details:
 In the transaction details, the user would be able to view the
transactions based on multiple search criteria like start date, end
date and transaction time.
 The transaction type field has a drop down menu with the
following options to select:-
 Issued - to view the scrips that has been generated
 Utilized – to view the scrips which are utilised
 Transferred – to view the scrips which are transferred to another IEC
holder
 Transfer Pending – to view the scrips for which approval for transfer is
pending
 All – to view all types of scrips
17
Mechanism of Scrip Transfer
 The user who has created a ledger account can transfer a scrip to another user. The user
to which the scrip is transferred also needs to have a valid credit ledger account.
 The steps for transfer :
Action by Transferor :
1) From the credit ledger home page, user can select the ‘Transfer Scrip” tab to transfer
a particular scrip to any other user
2) The user can select the appropriate scrip to be transferred from the generated scrip.
The list of generated scrip is available in the drop-down menu along with scrip
available option.
3) After choosing the appropriate scrip, user can view the scrip amount and enter IEC
of the user to which the scrip is to be transferred.
4) The details of IEC holder of the transferee should be filled in “Enter Transferee”
option
5) Now OTP is generated and send to the user who has initiated the transfer on the
registered mobile number and email ID. The OTP is valid for 15 minutes. The user has
to put OTP to transfer the scrip successfully.
18 Mechanism of Scrip Transfer (Contd….)
6)After successfully transferring the scrip, the scrip will be viewed in a grid on the
same page. User who has initiated the transfer can cancel the request at this stage
using “Cancel” button option, if so warranted.
Action by Transferee:
7) IEC holder, who has to approve the request, needs to login and select “credit
ledger” tab from the left panel. From the credit ledger home page, the user to whom
the scrip is transferred can approve the transfer request by clicking on the
“Approved Scrip” tab.
8) User can view all scrips which are transferred to him. User can cancel the request
by clicking on the cancel button, if does not wish to accept the scrip.
9)Once the transferee wants to approve the transfer scrip request after clicking the
approved button, transferee has to fill a valid OTP which will be sent to him at his
registered email/mobile. The OTP will be valid for 15 minutes.
10) The scrip will be transferred to transferee after successful OTP validation.
Message “Scrip No.____ has been transferred successfully” will be displayed on the
screen.
19 Issues flagged by FIEO subsequent to RoDTEP
press release/ Advisory for resolution
 RoDTEP being duty rebate scheme should not be limited by the Budget
constraints.
 Immediate announcement of the RoDTEP rates for all the product so as to
remove uncertainty and help the trade to factor such rates while negotiating
or executing new orders. All rates to be notified by 31st January, 2021.
 The rates may be notified at 4/6 digits so as to reduce the fixation work and
provide flexibility to exporters.
 Provide RoDTEP benefit to Advance Authorization Holders, DFIA, ARO, EOUs,
SEZs as they also suffer embedded taxes and also incur taxes on fuel both for
inward and outward transportation.
 Transitional mechanism to cover those cases where shipping bills were filed
before 31st of December, 2020 but LEO issued on or after 1st January, 2021
without the need of declaration of RoDTEP or the Code RODTEPY.
20
Issues flagged by FIEO subsequent to RoDTEP Advisory
for resolution ….contd..
 Allow the benefit of RoDTEP for shipment through courier and foreign post
office by modifying CSB-V and PBE-2
 Dispense with the need of having RoDTEP declaration in the Shipping bill
and allow the benefit without declaration , when RoDTEP rates are notified
subsequently.
 Dispense with RMS after EGM as RMS has already applied before the LEO
and it will simply lead to delays.
 Correct the adhoc entitlement as software is sometime wrongly
calculating the RoDTEP ad-hoc entitlement
 Clarify that RoDTEP can be claimed even if exporter has availed EPCG as
RoDTEP benefits are nowhere related to Capital Goods. (Software
amended to allow it)
21

THANK YOU

For any clarification on RoDTEP , please mail:

hcpant@fieo.org
achowrasia@fieo.org