For years, the Merchandise Exports from India Scheme (MEIS) has been the major platform through which export incentives were provided. Yet, with the evolution of international regulations on global trade, India has moved to the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. For Indian MSMEs, it is not just a change of name but a paradigm shift to a more robust framework that is WTO-compliant and reveals "hidden" costs.


Beyond the Surface: Recovering Hidden Taxes

In the past, various domestic taxes were levied and became part of the cost of production. This resulted in the low competitiveness of Indian exports. RoDTEP Scheme specifically addresses this issue and helps exporters recover:


  • Central and State Taxes on Fuel: VAT paid on diesel and petrol used for transporting goods for export.


  • Electricity Duty: Tax paid on electricity used for the manufacturing process.


  • Mandi Tax and Stamp Duty: Tax and administrative costs incurred for inputs used for export products.


  • This way, RoDTEP helps you "export goods, not taxes."


Step-by-Step: Generating Your RoDTEP Scrips

Once your Shipping Bill is processed and "Yes" is selected, the benefit is credited to your Electronic Credit Ledger (ECL), which is available on the ICEGATE portal. The following are the steps to convert these credits into available Scrips:


  • Log in to ICEGATE: Log in to your account using your digital signature.


  • Open ECL: Once you are logged in, click on the "Financial Services" tab and then "Electronic Credit Ledger."


  • Check Available Credits: The balance has already been generated from your processed Shipping Bills.


  • Create Scrip: Now, you can select the available credits and click on "Generate Scrip."


  • Utilize or Transfer Scrip: Once you have generated your Scrip, you can use it to pay BCD on imports or transfer it to another IEC holder.


Compliance Alert: The Annual RoDTEP Return (ARR)

To ensure that the scheme is not compromised in any way, the government has introduced the Annual RoDTEP Return (ARR). Exporters need to file this return on an annual basis and compare the benefits availed with actual exports.


Why is it critical? Not filing the ARR within the stipulated period or furnishing incorrect information will not only suspend your benefits but will also result in the recovery of credit with interest and imposition of heavy penalties. Considering ARR as a non-negotiable part of your compliance is critical.


Flourishing in the Global Market

The move to RoDTEP represents a more transparent and automated method to improve your bottom line. While the intricacies of HS Code alignment and portal submissions may appear complex, the benefits of claiming fuel and electricity duty far outweigh the exercise.