Monday, April 15, 2024
HomeNewsGovt extends validity of RoDTEP scrips

Govt extends validity of RoDTEP scrips


NEW DELHI : In a relief to exporters, the Union government has extended the validity of the e-scrips issued under the duty remission scheme to two years from one. The move comes amid complaints from the industry over these scrips being traded at a steep discount and the transfer module not working for 3 months.

The Remissions of Duties and Taxes on Exported Products (RoDTEP) scheme came into effect in August 2021 and cover 8555 tariff lines. It aims to refund exporters duties and taxes such as value added tax on fuel used in transportation, Mandi tax and duty on electricity used during manufacturing, that were so far not being refunded. Under the Scheme, exporters are given tax rebates to the tune of 0.5-4.3%.

“The validity period of scrips is increased from one year to two years from the date of their generation, ” the central board of indirect taxes and customs (CBIC) said in a notification on Monday.

Ajay Sahai, DG and CEO, FIEO said that the extension of the validity of RoDTEP and RoSCTL scrips from 1 year to 2 years will help the trade. ” The increased validity of scrips will help avoid distress sale as scrips issued during October 2021 are nearing their expiry and the transfer module did not work for about 3 months,” said Sahai.

The refund would be credited to an exporter’s ledger account with Customs and used to pay Basic Customs duty on imported goods. The credits can also be transferred to other importers. With the change, the exporters can use these for over a 2 year period, allowing it to avail a better rate for the scrips.

Rodtep was brought in to replace merchandise exports from India scheme (MEIS), after the World Trade Organisation dispute body ruled that it distorted trade by providing direct subsidies.

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